(Bloomberg) -- Shin Kong Financial Holding Co.’s shares jumped 6.3% on Tuesday after local media reported that the Taiwanese conglomerate, which has insurance, brokerage and underwriting businesses, was close to being acquired by a larger financial firm.
The Economic Daily News reported that CTBC Financial Holding Co. will hold an extra board meeting Tuesday to discuss a merger plan with Shin Kong Financial. CTBC outbid Taishin Financial Holding Co., which was also reportedly looking to acquire Shin Kong, according to the Taipei-based newspaper.
Representatives for Shin Kong and Taishan declined to comment on the reports. CTBC’s spokesperson wasn’t immediately available to respond to questions.
Shin Kong has in recent years faced a series of crises. In 2020, the firm’s life insurance subsidiary was fined NT$27.6 million ($860,000) for poor internal controls. A few months before that punishment was announced, founder Wu Tung-chin stepped down as chairman.
A deal for Shin Kong would be the first sale of a financial holding company in Taiwan since Fubon Financial Holding Co. acquired Jih Sun Financial Holdings Co. back in 2022. Citigroup Inc. in 2023 also sold its banking business in Taiwan to DBS Group Holdings Ltd.
CTBC Financial is Taiwan’s third largest financial holding company by assets, according to data from the Financial Supervisory Commission. Shin Kong was ranked 5th and Taishin Financial was 13th.
(Corrects timeline of Wu’s resignation from Shin Kong in fourth paragraph and Shin Kong’s ranking in last paragraph.)
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