18 January 2019

SAC Private Capital, GE Capital to exit Taiwan bank, WSJ says

GE Capital and a unit of US hedge-fund firm SAC Capital Advisors LP agreed to sell their majority stake in a small Taiwanese bank, Cosmos Bank, to the island’s China Development Financial Holding Co. (CDF), which is buying the entire lender, the Wall Street Journal reported Tuesday. CDF offered 0.2 CDF share and NT$13.40 (44 US cents) for every Cosmos share held. Based on Monday’s closing price, the offer was a 2.6 percent discount to Cosmos shares. SAC Private Capital Group LLC and GE Capital bought a combined 82 percent stake in 2007 for US$900 million, when Taiwan badly needed foreign capital to shore up its banking sector amid an upsurge in credit-card defaults, the report said. The deal, if approved by Taiwan’s financial regulator, will be the latest exit by foreign investors from the island’s crowded banking sector, it added.

– Contact HKEJ at [email protected]



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