Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

Shin Kong Financial Holding / Event-Driven

<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>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

Founder of Antler Capital

Stanley Tsai, CFA

Thematic (Sector/Industry)

<ul>
<li>The unfolding crisis is unlikely to have far-reaching impacts on Asia financial names, given their more robust deposit franchises and sector diversification.</li>
<li>That said, the Taiwanese financial holdcos do seem to be substantially more exposed than their peers in other markets owing to the USD fixed-income exposures at their life insurance units.</li>
<li>In a flight-to-quality scenario, we expect Fubon FHC to outperform the more geared Shin Kong FHC.</li>
</ul>


The unfolding crisis is unlikely to have far-reaching impacts on Asia financial names, given their more robust deposit franchises and sector diversification.
That said, the Taiwanese financial holdcos do seem to be substantially more exposed than their peers in other markets owing to the USD fixed-income exposures at their life insurance units.
In a flight-to-quality scenario, we expect Fubon FHC to outperform the more geared Shin Kong FHC.


Asia Financials: The Fallout from SVB and Silvergate | Where's the Biggest Asset/Liability Mismatch?

Pan-Asia Index Flows & Special Situations, Quiddity Advisors

Janaghan Jeyakumar, CFA

Pan-Asia Index Flows & Special Situations

Index Rebalance

<ul>
<li>The T50 index represents the top 50 largest stocks by market capitalization in the Taiwan Stock Exchange (TWSE). The T100 index represents the next 100 largest names (51-150 ranks).</li>
<li>In this insight, we take a look at the potential ADDs and DELs for the June 2025 index rebal event.</li>
<li>Currently, we see one change for T50 and one change for T100.</li>
</ul>


The T50 index represents the top 50 largest stocks by market capitalization in the Taiwan Stock Exchange (TWSE). The T100 index represents the next 100 largest names (51-150 ranks).
In this insight, we take a look at the potential ADDs and DELs for the June 2025 index rebal event.
Currently, we see one change for T50 and one change for T100.


Quiddity Leaderboard T50/​​​100 Jun25: Some Changes to Expectation; Three Weeks to Base Date

<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.

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Shin Kong Financial Holding (2888 TT)

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 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

Asia Financials: The Fallout from SVB and Silvergate | Where's the Biggest Asset/Liability Mismatch?

For the most part, we expect Asia financial names to be able to withstand the SVB / Silvergate fallout. But risks in ALM are reminiscent of what...

Stanley Tsai, CFA

Quiddity Leaderboard T50/100 Jun25: Some Changes to Expectation; Three Weeks to Base Date

After the June 2025 index review, we expect an intra-review index change to be triggered by the completion of the Taishin-Shin Kong merger in late...

Janaghan Jeyakumar, CFA

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

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52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

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 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

Asia Financials: The Fallout from SVB and Silvergate | Where's the Biggest Asset/Liability Mismatch?

For the most part, we expect Asia financial names to be able to withstand the SVB / Silvergate fallout. But risks in ALM are reminiscent of what...

Stanley Tsai, CFA

Quiddity Leaderboard T50/​​​100 Jun25: Some Changes to Expectation; Three Weeks to Base Date

After the June 2025 index review, we expect an intra-review index change to be triggered by the completion of the Taishin-Shin Kong merger in late...

Janaghan Jeyakumar, CFA

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

Quiddity Leaderboard T50/100 Jun25: Some Changes to Expectation; Three Weeks to Base Date