International financial services provider Citi has been given the green light from the board of directors of Bank of Overseas Chinese for the 100% acquisition of the Taiwanese bank, in a transaction that is worth approximately $427.3 million.
The approval, agreed by a group of major shareholders, including Polaris Securities, Far Glory Life Insurance and APEX International Financial Engineering Research & Technology, will be further discussed in a shareholders’ meeting to be held by Bank of Overseas Chinese (BOOC).
Under the terms of the acquisition, Citi Taiwan and BOOC will be combined following the consummation of the merger. The combined entity will create a business with 66 branches and assets totaling $22.8 billion, making it the largest international bank and 13th largest among all domestic Taiwan banks by total assets.
Established in 1961 as a private commercial bank, BOOC offers corporate banking products and services, as well as a broad suite of consumer and wealth management services. It serves more than one million clients through 55 branches across Taiwan, and employs 2,200 staff.
Robert Morse, CEO of Citi markets and banking for Asia Pacific, said: The acquisition of BOOC is a significant step in strengthening Citi’s presence in Taiwan. It reflects our ability and desire to complement our robust organic growth plans in the Asia Pacific region with strategic acquisitions, and to serve our clients better by expanding both our domestic presence and product offerings.
The transaction is subject to shareholder and regulatory approvals, and is expected to close in the second half of 2007.