On August 31, the financial regulator in Taiwan announced that loss-making Cosmos Bank will be sold to hedge fund, SAC Private Capital Group, and General Electric for $900 million.
The investors will subscribe to new shares at NT$2 $.06 per share. The price, which represents more than a 60% discount to the recent traded price, disappointed shareholders and sent Cosmos shares down by 7%.
The owners of Cosmos were facing an impending deadline to sell the bank to an investor who would recapitalise the bank. Cosmos is loss-making due to defaults on its consumer credit loans. It had...
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