Fubon linked to buyout of Carlyle-backed Ta Chong
Fubon Financial, parent of Taiwan’s second largest life insurance firm, has announced plans to acquire a bank, prompting speculation that mid-sized Taiwanese lender Ta Chong Bank is the target.
The financial company confirmed on Wednesday the plan to expand its presence in southern Taiwan. The group's banking subsidiary wants to enlarge its network to 200 branches, up from the current 126 branches, Victor Kung, president of Fubon, said in a briefing for investors.
"Our weakness from lacking many branches in central and southern Taiwan could be strengthened by Ta Chong," Kung said.
The announcement comes after Chien-Ping Chen, chairman of Ta Chong, told Kung that The Carlyle Group plans to sell its stake in the lender and exit Taiwan's low-margin banking market. Carlyle owns about a 40% stake in Ta Chong, valued at around $310 million, a source told Reuters last month.
Carlyle is said to have invited investment banks to run the sale, but no potential buyers have come forward. However, according to local media, Fubon and Yuanta Financial are interested in buying the stake.
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