China Development Financial Holding Corporation (TSEC:2883) made an offer to acquire KGI Securities Co. Ltd. (GTSM:6008) from KGI Financial Services Group, Government of Singapore Investment Corporation Pte Ltd, China Life Insurance Co., Ltd. (TSEC:2823), Cathay Life Insurance Co., Ltd. and other shareholders for TWD 51.5 billion in cash and stock on April 5, 2012. As a part of consideration, China Development Financial Holding offered to pay TWD 5.5 in cash and 1.2 China Development Financial Holdings's, Parent of Grand Cathay Securities Corporation, new share for each share of KGI Securities. Cathay Life Insurance Co., Ltd. agreed to tender 131.6 million share of KGI Securities and get 157.9 million shares of China Development Financial Holding as consideration. China Development plans to finance the transaction by doing a capital reduction of TWD 16 billion for its subsidiary China Development Industrial Bank, as well as to capitalize on its own funding and new share issuance. The transaction is subject to obtaining financing and shareholder's approval of China Development Financial Holding and KGI Securities.

The transaction is conditioned to minimum tender of at least 1.638 billion shares representing 50.1% of the outstanding shares of KGI Securities, receipt of applicable regulatory clearances and other customary conditions. As of April 19, 2012, Taiwan's financial regulator approved the deal. Following the completion of the tender offer, China Development intends to implement a second-step merger pursuant to which all remaining shares of KGI Securities not tendered in the offer will go through a series of procedures including share exchange at a price not better than that of the tender offer, making KGI Securities a wholly owned subsidiary within China Development Group. As of May 28, 2012, China Development Financial Holding has secured 81.7% stake in KGI Securities. The transaction is expected to close in the first half of 2012 and Grand Cathay Securities and KGI securities will merge by year-end 2013. KPMG Advisory Services Co., Ltd. acted as the fairness opinion provider and Citigroup Global Markets Taiwan Limited acted as financial advisor for China Development. Credit Suisse AG, Taipei Branch and Morgan Stanley Taiwan Limited acted as financial advisors for KGI Securities Co. Ltd.

China Development Financial Holding Corporation (TSEC:2883) completed the acquisition of KGI Securities Co. Ltd. (GTSM:6008) from KGI Financial Services Group, Government of Singapore Investment Corporation Pte Ltd, China Life Insurance Co., Ltd. (TSEC:2823), Cathay Life Insurance Co., Ltd. and other shareholders on January 18, 2013.