Taiwan plans $609m M&A fund

According to an announcement, the fund will launch in mid-September. The goal is to encourage mergers and buyouts of Taiwanese companies working in similar industries, in order to consolidate their efforts and improve the domestic economy. The fund will also assist local companies that want to acquire foreign peers in order to access new markets, brands, technologies or human resources.

Up to 30% of the money needed for an eligible merger can be provided from the fund. The government will not transfer funds to a company until it has itself raised 75% of the needed capital within a year. In addition, profits earned by backed companies will not be eligible for allocation until the government's investment has been recouped.

The NDC explicitly ruled out backing companies that seek to acquire or merge with domestic rivals, saying that such mergers are unlikely to result in the growth of the economy or specific industries. This leaves the door open for mergers between firms playing different roles in the same industry.

The NDC aims to support the growth of Taiwan's economy and strengthen domestic companies. Previous investments include a NT$700 million commitment to polysilicon maker Powertec Energy Corporation, and a NT$450 million commitment to CDIB Biotech Venture Capital fund, both in May 2014.

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• Topics
• Greater China
• Fundraising
• GPs
• Mezzanine
• Taiwan (China)
• Fundraising
• GPs
• buyout
• M&A
• Mezzanine