Special Situations, Content Strategist, Smartkarma

Crispin Francis

Special Situations, Content Strategist

Smartkarma

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

Research Reinvented

Event-Driven

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!

On 13 August 2015, Yuanta Financial Holding ("2885 TT") announced that it would be acquiring Ta Chong Bank ("2847" TT) for TWD 16.3 / share.<ul><li>The deal is valued at ~ USD 1.5 Bn.&nbsp;</li><li>&nbsp;50% Cash / 50% Scrip</li><li>The share swap ratio is adjusted such that the implied offer for the scrip component is equivalent to TWD 8.15/share. The 'share price' of Yuanta is calculated from the average of 20/40/60 trading days.</li></ul>The ratio according to the presentation is given to be 0.46, however, the implied ratio in the announcement is calculated to be 0.528 (using price of Yuanta common share given in the announcement,&nbsp;NT$15.4310 per share).To clarify things, we spoke to TC Bank. Extracts from the conversation can be found further down in this piece.The entire sector has been falling.&nbsp;Ta Chong Bank, however, has done the opposite... more below the fold...

On 13 August 2015, Yuanta Financial Holding ("2885 TT") announced that it would be acquiring Ta Chong Bank ("2847" TT) for TWD 16.3 / share.The deal is valued at ~ USD 1.5 Bn.&nbsp;&nbsp;50% Cash / 50% ScripThe share swap ratio is adjusted such that the implied offer for the scrip component is equivalent to TWD 8.15/share. The 'share price' of Yuanta is calculated from the average of 20/40/60 trading days.The ratio according to the presentation is given to be 0.46, however, the implied ratio in the announcement is calculated to be 0.528 (using price of Yuanta common share given in the announcement,&nbsp;NT$15.4310 per share).To clarify things, we spoke to TC Bank. Extracts from the conversation can be found further down in this piece.The entire sector has been falling.&nbsp;Ta Chong Bank, however, has done the opposite... more below the fold...

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)

Standing on Uneven Ground.

On 13 August 2015, Yuanta Financial Holding ("2885 TT") announced that it would be acquiring Ta Chong Bank ("2847" TT) for TWD 16.3 / share. The...

Crispin Francis

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52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

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

Standing on Uneven Ground.

On 13 August 2015, Yuanta Financial Holding ("2885 TT") announced that it would be acquiring Ta Chong Bank ("2847" TT) for TWD 16.3 / share. The...

Crispin Francis