Longreach considers En Tie Bank sale - sources

Longreach, which acquired 51% of En Tie for $637 million in 2007, has invited around eight corporate finance teams to compete for the sales mandate, according to two sources cited by Reuters. A decision on an investment bank could be made in the next two weeks.

En Tie saw its shares fall by 0.7% on Thursday, giving it a market cap of approximately $880 million.

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 Carlye Group, Newbridge Capital and SAC Private Capital making investments in the country's 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.

However, recent history shows that buyouts remain a challenge. In June 2011, the government rejected a KKR-led management buyout of Yageo on the grounds that minority investors didn't have sufficient information to determine whether the deal was in their best interest.

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• Topics
• Greater China
• Exits
• Financials
• Exit
• The Longreach Group Limited
• Financial Services
• Newbridge Capital
• Nomura Principal Finance
• The Carlyle Group