Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

The Tender Offer for <a href="https://www.smartkarma.com/entities/jih-sun-financial-holdings" target="_blank" data-smartkarma-citation="entities:17971:1" rel="noopener">Jih Sun Financial (5820 TT)</a> by <a href="https://www.smartkarma.com/entities/fubon-financial-holding-co" target="_blank" data-smartkarma-citation="entities:11869:1" rel="noopener">Fubon Financial Holding Co (2881 TT)</a> closes on 23 March. The original close was 1 February but a 50-day extension was granted as requested, to 23 March. In Taiwan, Tender Offers are for a minimum of 20 days and a maximum of 50 days, and an extension can be granted for 50 days. There are further extensions possible for "reasonable cause" upon application to the FSC, but it is not clear that exists in this case. I expect if Fubon wants it, the FSC would be inclined to grant it. There appears to be substantial regulatory support for the deal as a first among what may be many such future financial holding company consolidations. But there remain questions as to whether this gets done or not.

The Tender Offer for Jih Sun Financial (5820 TT) by Fubon Financial Holding Co (2881 TT) closes on 23 March. The original close was 1 February but a 50-day extension was granted as requested, to 23 March. In Taiwan, Tender Offers are for a minimum of 20 days and a maximum of 50 days, and an extension can be granted for 50 days. There are further extensions possible for "reasonable cause" upon application to the FSC, but it is not clear that exists in this case. I expect if Fubon wants it, the FSC would be inclined to grant it. There appears to be substantial regulatory support for the deal as a first among what may be many such future financial holding company consolidations. But there remain questions as to whether this gets done or not. 

Head of Research, IPOs & Placements, Aequitas Research

Sumeet Singh

Head of Research, IPOs & Placements

Smartkarma

Smartkarma unites the fragmented investment industry, connecting institutional investors, independent research providers, and corporates within a single network.

Research Reinvented

Equity Capital Markets

Yuanta Financial Holding Co / Equity Capital Markets

Carlyle plans to raise US$90m by selling its entire stake in Yuanta Financial. Carlyle had acquired the stake when Yuanta bought Ta Chong Bank Ltd in 2015. This will be the first and last sell down by Carlyle.The deal scores a marginal negative score on our framework owing to the company's lacklustre trackrecord accompanied by a tepid earnings momentum. The stock remains cheap but recent results haven't been great and the company is in the midst of a transformation.<h2>Placement specifics</h2><ul><li>Company…</li></ul>

Carlyle plans to raise US$90m by selling its entire stake in Yuanta Financial. Carlyle had acquired the stake when Yuanta bought Ta Chong Bank Ltd in 2015. This will be the first and last sell down by Carlyle.The deal scores a marginal negative score on our framework owing to the company's lacklustre trackrecord accompanied by a tepid earnings momentum. The stock remains cheap but recent results haven't been great and the company is in the midst of a transformation.Placement specificsCompany…

Yuanta Financial - Carlyle Is Cutting Losses

Research and consultancy, Tabbush Report

Daniel Tabbush

Research and consultancy

Tabbush Report

We provide research and consultancy on Asian banks. Our focus is on what we call “Asian bank research, without the noise.” We are interested in the most critical swing-factors for banks, the NPL and credit cycle, and where we believe there is a gap between perception and reality. We often focus on the less studied components of bank financial statements.  Our research is highly thematic, sometimes examining unlisted banks and companies as a window on mainstream banks. 

Being independent allows us to look at smaller banks, often overlooked by others. Analysis of BIS bank guidelines in the context of Asia, is also a focal point, while we also analyze global banks operating in the region. We use what we believe is the most comprehensive, reliable financials database, SNL Financial. S&P Capital IQ augments our database, with corporate data and CEIC, with economics. 

Asian bank research, without the noise.

Equity Bottom-Up

Mega Financial Holding Co., Ltd / Equity Bottom-Up

Mega Financial Holding Co., Ltd (2886 TT)

Across nearly 300 banks in Asia-Pacific the average NPL ratio is 2.47%. In Taiwan banks have essentially no NPLs at just 0.27% of loans.We find it hard to imagine that this will remain the case, especially given their lending to Taiwanese companies doing business in China.The provision and earnings delta for these banks may be some of the most dramatic in Asia, given they are starting from a seemingly pristine loan book.

Across nearly 300 banks in Asia-Pacific the average NPL ratio is 2.47%. In Taiwan banks have essentially no NPLs at just 0.27% of loans.We find it hard to imagine that this will remain the case, especially given their lending to Taiwanese companies doing business in China.The provision and earnings delta for these banks may be some of the most dramatic in Asia, given they are starting from a seemingly pristine loan book.

Special Situations, Content Strategist, Smartkarma

Crispin Francis

Special Situations, Content Strategist

The official share swap ratio was announced on Friday, 21 August 2015.Share swap ratio - 1 common stock of TC Bank will be exchanged for NT$8.15 and 0.460972 common stock newly issued by Yuanta<ul><li>The&nbsp;implied offer is approximately TWD 13.70</li><li>Gross Spread ~ 8.16%</li></ul>What is the risk : reward currently implied in&nbsp;this deal and how was the ratio was calculated? We will explore this further in the insight....&nbsp;

The official share swap ratio was announced on Friday, 21 August 2015.Share swap ratio - 1 common stock of TC Bank will be exchanged for NT$8.15 and 0.460972 common stock newly issued by YuantaThe&nbsp;implied offer is approximately TWD 13.70Gross Spread ~ 8.16%What is the risk : reward currently implied in&nbsp;this deal and how was the ratio was calculated? We will explore this further in the insight....&nbsp;

We spoke to several contacts of ours and TC Bank; the share swap ratio calculation is not as straight forward as it seems.&nbsp;The stock dividends that went X on the 13 of August 2015 for both TC Bank and Yuanta affects the ratio.... more below the fold..

We spoke to several contacts of ours and TC Bank; the share swap ratio calculation is not as straight forward as it seems.&nbsp;The stock dividends that went X on the 13 of August 2015 for both TC Bank and Yuanta affects the ratio.... more below the fold..

The dividend effect will pull share swap ratio down significantly!

Taiwan

Yuanta Financial Holding Co., Ltd. is a holding company. Its main businesses include brokerage, margin financing, domestic and overseas issuance, financial and M&A advisory, primary listings, corporate financial, securities underwriting and placements, etc. The company also holds the leading position in the derivatives business.

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Yuanta Financial Holding Co (2885 TT)

Jih Sun Financial Deal Down To The Wire

Fubon deal for Jih Sun comes down to the wire. Extension is possible but there is no word from either of the two big holders. Jih Sun trades at...

Travis Lundy

Yuanta Financial - Carlyle Is Cutting Losses

Carlyle plans to raise US$90m by selling its entire stake in Yuanta Financial. Carlyle had acquired the stake when Yuanta bought Ta Chong Bank Ltd...

Sumeet Singh

Taiwan's Banks Have Zero NPLs; For Now

Across nearly 300 banks in Asia-Pacific the average NPL ratio is 2.47%. In Taiwan banks have essentially no NPLs at just 0.27% of loans.We find it...

Daniel Tabbush

The Ratio is Out..

The official share swap ratio was announced on Friday, 21 August 2015.Share swap ratio - 1 common stock of TC Bank will be exchanged for NT$8.15...

Crispin Francis

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52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Jih Sun Financial Deal Down To The Wire

Fubon deal for Jih Sun comes down to the wire. Extension is possible but there is no word from either of the two big holders. Jih Sun trades at...

Travis Lundy

Yuanta Financial - Carlyle Is Cutting Losses

Carlyle plans to raise US$90m by selling its entire stake in Yuanta Financial. Carlyle had acquired the stake when Yuanta bought Ta Chong Bank Ltd...

Sumeet Singh

Taiwan's Banks Have Zero NPLs; For Now

Across nearly 300 banks in Asia-Pacific the average NPL ratio is 2.47%. In Taiwan banks have essentially no NPLs at just 0.27% of loans.We find it...

Daniel Tabbush

The Ratio is Out..

The official share swap ratio was announced on Friday, 21 August 2015.Share swap ratio - 1 common stock of TC Bank will be exchanged for NT$8.15...

Crispin Francis

The dividend effect will pull share swap ratio down significantly!

We spoke to several contacts of ours and TC Bank; the share swap ratio calculation is not as straight forward as it seems. The stock dividends that...

Crispin Francis