China Development Financial Holding Corporation completed the acquisition of KGI Securities Co. Ltd. from KGI Financial Services Group, Government of Singapore Investment Corporation Pte Ltd, China Life Insurance Co., Ltd., Cathay Life Insurance Co., Ltd. and other shareholders.
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.