SAC, GE biding time over Cosmos Bank exit

Cosmos Chairman Paul Lo told Reuters that the backers are waiting for the bank to become profitable, which could happen in 2012 for the first time in four years. This would give them a higher chance of making a premium on the NT$12-T$13 ($0.4) per share they paid for their joint 82% stake in 2007.

"If you offer [$1.15 billion], they can consider it," said Lo. "SAC and GE are not hiring any investment bankers or looking for any buyers. They are in no hurry now."

Cosmos recorded a loss of T$300 million last year and NT$3.4 billion in 2010. Its shares closed at NT$7.14 on Tuesday.

It appears SAC and GE aren't ready to join a host of other PE investors that are looking to offload their Taiwanese banking assets. One of these is Japan-focused private equity firm Longreach Group, which is said to be weighing up the prospect of selling its majority stake in En Tie Commercial Bank.

Taiwan has often shown suspicion towards foreign private equity firms investing in its home-grown companies but this hasn't stopped the likes of The Carlyle Group, Newbridge Capital and SAC making investments in its banking sector. Newbridge, for example, invested NT$27 billion (then $844 million) for a 36% share of Taishin Chong Commercial Bank in February 2006. That investment was matched by a NT$4 billion commitment by Nomura.

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• Topics
• Financials
• Exits
• Greater China
• Taiwan (China)
• Financial Services
• Exit