Fubon Financial Holding Company FHC has emerged victorious in its bid for Taipei Bank. It beat five other bidders for the deal, which was run through a transparent auction process by Taipei Bank's advisers, Goldman Sachs.
The acquisition will be made using Fubon stock, which will be exchanged for Taipei Bank shares. Fubon will offer a value of NT$35.5 for every Taipei Bank share and will use the 30 day average of its own stock for the exchange ratio. This equates to an exchange ratio of 1.121, which clearly favours Taipei Bank.
At this price, Fubon is paying of price of around 18 times this year's Taipei Bank earnings and a price to...
