Fubon Financial Holding Co. to bring China unit under corporate umbrella

Fubon Financial Holding Co., one of Taiwan’s leading financial holding firms, has received regulatory approval to bring a Chinese banking subsidiary fully under its corporate umbrella.

Fubon Financial said it was informed by the Shanghai United Assets and Equity Exchange that it has secured the right to acquire the remaining stake in Fubon Bank (China) Co. and make the bank a wholly owned subsidiary.

Fubon Financial acquired an 80 percent stake in China-based First Sino Bank for 5.65 billion Chinese yuan (US$869 million) in 2014 and then changed its name to Fubon Bank (China).

Under the acquisition’s structure, Fubon Financial held a 29 percent stake in Fubon Bank (China) and Taipei Fubon Commercial Bank, Fubon’s domestic banking arm, held a 51 percent stake.

The other 20 percent is owned by Shanghai Pudong Development Bank, which Fubon Financial has proposed to buy for 2.13 billion Chinese yuan to give the financial holding company full ownership of Fubon Bank (China).

In April, Fubon Financial raised NT$36 billion (US$111 million) through an issuance of preferred stock, and analysts believe the company will likely use some of those funds to finance the acquisition of the outstanding stake in the Chinese bank.

Fubon Financial said having total ownership of Fubon Bank (China) will help it further penetrate the huge China market.

On its website, the Shanghai-based Fubon Bank (China) said it now has 22 outlets in Shanghai, Shenzhen, Nanjing, Suzhou and Tianjin, where many Taiwanese investors operate their businesses.

The Chinese bank is planning to open at least three more outlets later this year, helping Fubon further expand its network in China.

Source: China Post