Bloomberg 25 July 2013
CTBC Financial Holding Co. (2891) agreed to buy Tokyo Star Bank Ltd. for about 52 billion yen ($520 million), the first takeover of a Japanese commercial lender by a foreign bank, two people with knowledge of the matter said.
CTBC, the Taipei-based lender known as Chinatrust, will buy a controlling stake from shareholders including Lone Star Funds, Shinsei Bank Ltd. (8303) and Credit Agricole SA (ACA), the people said, asking not to be named because the information is private. The acquisition is subject to approval from financial regulators in Japan and Taiwan, according to the people.
The deal was reached after a meeting in Tokyo yesterday, one of the people said. Talks had earlier stalled as Tokyo Star Bank’s rising profit and a rally in Japanese bank stocks bolstered shareholders’ expectations of a higher price, three people with knowledge of the situation said on July 5.
Chinatrust said today in a statement to Taiwan’s stock exchange that reports of an agreement to purchase Tokyo Star Bank are speculation, without elaborating.