Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

Shin Kong Financial Holding / Event-Driven

<ul>
<li>The TFTC approved in early January, The TFTC <a href="https://www.cna.com.tw/news/afe/202501080360.aspx" target="_blank" rel="noopener">said</a> market power would be limited and competition unrestricted. Another <a href="https://www.cna.com.tw/news/afe/202501070351.aspx" target="_blank" rel="noopener">CNA article</a> suggested the two FHCs were completing employee placement plans.</li>
<li>Apparently, as of a month ago, only the Shin Kong <em>Bank</em> employee settlement plan had not been completed but the FSC has rules about that. Consideration likely proceeds.</li>
<li>There are specific rules about how these things are dealt with. In the meantime, the spread - still wide - is narrowing.</li>
</ul>


The TFTC approved in early January, The TFTC said market power would be limited and competition unrestricted. Another CNA article suggested the two FHCs were completing employee placement plans.
Apparently, as of a month ago, only the Shin Kong Bank employee settlement plan had not been completed but the FSC has rules about that. Consideration likely proceeds.
There are specific rules about how these things are dealt with. In the meantime, the spread - still wide - is narrowing.


Shin Kong (2888 TT) / Taishin (2887 TT) - Waiting on the FSC

<ul>
<li>Once shareholders of <a href="https://www.smartkarma.com/entities/shin-kong-financial-holding" target="_blank" data-smartkarma-citation="entities:15351:1" rel="noopener">Shin Kong Financial Holding (2888 TT)</a> and <a href="https://www.smartkarma.com/entities/taishin-financial-holding" target="_blank" data-smartkarma-citation="entities:715:1" rel="noopener">Taishin Financial Holding (2887 TT)</a> agreed to the merger two months ago, that meant an FSC submission would come shortly.</li>
<li>It came on 3rd December. Normally it takes two months, but can be extended. It appears the TFTC submission (which is considered wholly separately) was made as early as September.</li>
<li>This should get approved within the timeframe or not long afterwards. There is one known "document" missing from the application as of submission, but it shouldn't be a problem.</li>
</ul>


Once shareholders of Shin Kong Financial Holding (2888 TT) and Taishin Financial Holding (2887 TT) agreed to the merger two months ago, that meant an FSC submission would come shortly.
It came on 3rd December. Normally it takes two months, but can be extended. It appears the TFTC submission (which is considered wholly separately) was made as early as September.
This should get approved within the timeframe or not long afterwards. There is one known "document" missing from the application as of submission, but it shouldn't be a problem.


Shin Kong/Taishin Merger - Proceeding Apace

<ul>
<li>After rumours were rekindled a week earlier, on 22 August 2024, <a href="https://www.smartkarma.com/entities/taishin-financial-holding" target="_blank" data-smartkarma-citation="entities:715:1" rel="noopener">Taishin Financial Holding (2887 TT)</a> and <a href="https://www.smartkarma.com/entities/shin-kong-financial-holding" target="_blank" data-smartkarma-citation="entities:15351:1" rel="noopener">Shin Kong Financial Holding (2888 TT)</a> announced they would merge.</li>
<li>The ratio is 0.6022 shares of Taishin for every share of Shin Kong putting NEWCO assets at about the level of Taiwan #3 CTBC Financial. That's bad.</li>
<li>There's history here. LOTS of history. This would need approvals from the FSC and FTC, but CTBC is already a spoiner, and the SKFH Board Meeting was anything but clean.</li>
</ul>


After rumours were rekindled a week earlier, on 22 August 2024, Taishin Financial Holding (2887 TT) and Shin Kong Financial Holding (2888 TT) announced they would merge.
The ratio is 0.6022 shares of Taishin for every share of Shin Kong putting NEWCO assets at about the level of Taiwan #3 CTBC Financial. That's bad.
There's history here. LOTS of history. This would need approvals from the FSC and FTC, but CTBC is already a spoiner, and the SKFH Board Meeting was anything but clean.


Shin Kong (2888.TW) And Taishin (2887.TW) Agree to Merge, But It Isn't Clean, And It's A Bad Price

<ul>
<li>Media reports indicate that the shareholder base of <a href="https://www.smartkarma.com/entities/shin-kong-financial-holding" target="_blank" data-smartkarma-citation="entities:15351:1" rel="noopener">Shin Kong Financial Holding (2888 TT)</a> and <a href="https://www.smartkarma.com/entities/taishin-financial-holding" target="_blank" data-smartkarma-citation="entities:715:1" rel="noopener">Taishin Financial Holding (2887 TT)</a> have approved their merger. </li>
<li>Shin Kong meeting results were public just before the market closed. The results from Taishin were known earlier. The market and spread were un-moved. If anything, things widened a little.</li>
<li>Next, the two companies try to get fair Trade Commission, FSC, and Exchange approval to join to become Taishin Shin Kong FHC. <strong>And there's a good trade to do here.</strong>
</li>
</ul>


Media reports indicate that the shareholder base of Shin Kong Financial Holding (2888 TT) and Taishin Financial Holding (2887 TT) have approved their merger. 
Shin Kong meeting results were public just before the market closed. The results from Taishin were known earlier. The market and spread were un-moved. If anything, things widened a little.
Next, the two companies try to get fair Trade Commission, FSC, and Exchange approval to join to become Taishin Shin Kong FHC. And there's a good trade to do here.



Shin Kong and Taishin - There's a Good Value Swap Trade To Do Here

<ul>
<li>
<a href="https://www.smartkarma.com/entities/taishin-financial-holding" target="_blank" data-smartkarma-citation="entities:715:1" rel="noopener">Taishin Financial Holding (2887 TT)</a> has raised its bid for <a href="https://www.smartkarma.com/entities/shin-kong-financial-holding" target="_blank" data-smartkarma-citation="entities:15351:1" rel="noopener">Shin Kong Financial Holding (2888 TT)</a> and <a href="https://www.smartkarma.com/entities/ctbc-financial-holding-co-ltd" target="_blank" data-smartkarma-citation="entities:436:1" rel="noopener">CTBC Financial Holding (2891 TT)</a> has dropped its bid after FSC rejection.</li>
<li>Shin Kong's Board approved the revised (25% higher) Taishin bid. Shares in Shin Kong fell sharply on the FSC rejection of the CTBC bid. </li>
<li>Taishin's bid clearly has governance/related party issues and a significant portion of the "non-Taishin" reps on the Shin Kong Board had issues. October 9th passage is not a done deal. </li>
</ul>



Taishin Financial Holding (2887 TT) has raised its bid for Shin Kong Financial Holding (2888 TT) and CTBC Financial Holding (2891 TT) has dropped its bid after FSC rejection.
Shin Kong's Board approved the revised (25% higher) Taishin bid. Shares in Shin Kong fell sharply on the FSC rejection of the CTBC bid. 
Taishin's bid clearly has governance/related party issues and a significant portion of the "non-Taishin" reps on the Shin Kong Board had issues. October 9th passage is not a done deal. 


Shin Kong (2888 TT) Deal - Activism, Proxy Advice, Proxy Fight, Voting Risk, and Discounts

Taiwan

Shin Kong Financial Holding Co., Ltd. is a holding company.  Through its subsidiaries, the Company provides traditional life, health, group and accident insurance products and services, as well as acts as a broker, dealer and underwriter for financial securities.

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

Shin Kong Financial Holding (2888 TT)

Shin Kong (2888 TT) / Taishin (2887 TT) - Waiting on the FSC

The FSC is considering the merger case for Shin Kong and Taishin according to local press reports. The timing of the articles suggest approval...

Travis Lundy

Shin Kong/Taishin Merger - Proceeding Apace

The Shin Kong/Taishin spread is wide but contracting slowly. The Taishin vs Peers trade is rebounding off 10+yr lows. TFTC and FSC applications are...

Travis Lundy

Shin Kong (2888.TW) And Taishin (2887.TW) Agree to Merge, But It Isn't Clean, And It's A Bad Price

Shin Kong Financial and Taishin Financial have agreed to merge, but the Board decision and price aren't pretty. Looks a bit like a coup. And CTBC...

Travis Lundy

Shin Kong and Taishin - There's a Good Value Swap Trade To Do Here

In the big picture, Taishin is quite cheap to Peers. And Shin Kong quite cheap to Taishin. We are just waiting for the TFTC and FSC to approve. If...

Travis Lundy

Shin Kong (2888 TT) Deal - Activism, Proxy Advice, Proxy Fight, Voting Risk, and Discounts

Shin Kong & Taishin EGMs are Weds 9 Oct. Both firms are offering gifts to attend. Worth watching CTBC meeting 11 Oct too. Proxy solicitation...

Travis Lundy

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)