Shin Kong Financial Under the Microscope: Financial Supervisory Commission Takes a Closer Look
2024/9/16 19:05
(Updated at 9/16 21:15)
Shin Kong Gold’s Sale to Ssangyong Gold Blocked, CITIC Gold’s Public Acquisition Commences
Central News Agency reporter Xie Fangyu, Taipei, 16) Shin Kong Gold’s sales to Ssangyong Gold were blocked. Commencement of CITIC Gold’s public acquisition of Shin Kong Gold.
The boards of directors of Taishin Gold and Shin Kong Gold have approved a 100% share swap merger, at the same time, CITIC Gold has blocked the sale of Shin Kong Gold to Sangyeong Gold. To win the support of shareholders, Xinxin held an interim board of directors on the 11th and adjusted the share exchange structure to include special shares to compete with CITIC Capital.
At 7pm today, the Financial Supervisory Commission led the heads of the three major business bureaus to hold an impromptu press conference at 7pm today to announce that after a review, the Financial Supervisory Commission will suspend CITIC Financial. Shin Kong Financial’s request to launch a public takeover, that is, it will not agree.
Reasons for Suspending the Decision of the Financial Supervision Committee
- CITIC Financial Holdings should propose a plan to purchase sufficient shares and a merger plan. CITIC Financial Holdings did not properly plan the next merger without ensuring absolute control over Shin Kong Financial Holdings, which could later lead to disputes over equity and operating rights, which raised potential doubts about the maintenance of order in the financial market.
- CITIC Financial Holding should propose a specific and clear plan to release its shareholding if the merger is not completed within the deadline, unless the content of CITIC Financial Holding’s shareholding release plan is specified and the shareholding release is not completed. Shin Kong Financial Holdings or CITIC Financial Holdings, the operational stability of Shin Kong Financial Holdings and the order of financial markets, etc. will have consequences affecting the rights and interests of the shareholders.
- CITIC Financial Holdings should propose an evaluation of the financial condition of the invested enterprise in the next three years. After reviewing the content and basis of Shin Kong Life Shin Kong Financial Holdings, it does not show that it can fully realize the profit and loss of the target company’s life insurance subsidiary financial condition.
- Once an acquisition is launched, the stock prices of both parties may be affected, creating problems for the potential seller’s rights and interests. Therefore, in recent years, the association has discouraged public acquisitions using stock as consideration.