Taipei: Citibank N.A. of the US has agreed to acquire Taiwan’s Bank of Overseas Chinese (BOOC) for $426 mn(Rs1917 crore), BOOC said on 9 April.
Citibank will acquire all 1.194 bn outstanding shares in BOOC at $11.8 per share through its subsidiary Citibank Overseas Investment Corp, the Taiwanese bank said in a statement filed to the Taiwan Stock Exchange.
The merger, pending regulatory approval, is expected to be completed in the second half of this year.
A group of major BOOC shareholders, including Polaris Securities Co, Far Glory Life Insurance Co and APEX International Financial Engineering Research and Technology Co have agreed to vote in favour of the proposed transaction.
“The investment is expected to benefit Citibank’s long term development in Taiwan,” it said. The privately-run BOOC, founded in 1961, operates 55 branches in Taiwan with 2,200 employees serving more than one million customers.
After the acquisition, Citibank is expected to rank as the 13th largest bank and largest foreign bank in Taiwan by raising the number of its branches to at least 66 on the island.
Robert Morse, chief executive officer of Citi Markets and Banking Asia Pacific, said in a separate statement the acquisition of BOOC was a significant step in strengthening Citi’s presence in Taiwan.