TS Holdings — M&A Activity 2024

Sep 20, 2024

台新金控、新光金控董事會通過調整換股架構及價格

重申完成「新新併」以實現公司利益與股東價值最大化的決心

台新金控與新光金控於今（ 9/11 ）日分別經董事會決議通過調整換股架構，以台新金控之 0.6720 股普通股加計 0.175 股辛種特別股，換取新光金控 1 股普通股。辛種特別股每股面 額為新臺幣 ( 下同 )10 元，年利率 1.665% ，並在 3 年後按發行價格全數收回。台新金控仍 將依原規劃發行庚種特別股，換取新光金控現有已發行之特別股。

依台新金控今日收盤價 每股 18.50 元和辛種特別股每股面額計算，調整後轉換價格所含 的新光金控每股換股價格為 14.18 元，相較原訂價格提高 25% ，相較新光金今（ 9/11 ）日 收盤價 每股 13.50 元之溢價為 5% 。

自 2024 年 8 月 22 日宣布合意對等合併以來，台新金控進一步評估未來業務計劃以及潛在 的綜效，更堅定了合併後公司將為雙方股東創造最大價值的信心，故今日董事會通過調整 換股架構；而新光金控董事會在深入審閱新的換股條件後亦已決議同意該等調整，雙方將 竭盡全力完成合意合併以創造公司長期價值。

雙方期待在有共同的企業文化下，借重雙方的管理團隊，創造一個互補共融、均衡發展、
穩健成長的新金控。讓台新新光金控發揚光大，成為台灣金融業的新領導品牌。

Taishin FHC, Shin Kong FHC Boards Approve Enhanced Exchange Structure and Price Reaffirm Full Support of “Shin-Shin Merger” to Maximize Shareholder Value

The Board of Directors of each of Taishin FHC and Shin Kong FHC respectively held a board meeting today (11 September 2024) to pass a resolution approving an enhanced merger proposal between Taishin FHC and Shin Kong FHC by way of share exchange. Taishin FHC will issue 0.6720 ordinary shares and 0.175 H- class preferred shares in exchange for each 1 ordinary share of Shin Kong FHC; each H-class preferred share has a face value of NT$10 with an annual dividend yield of 1.665%, and will be redeemed at the issue price in 3 years. Taishin FHC will continue to issue G-class preferred share as previously announced in exchange for each existing preferred share of Shin Kong FHC.

Based on today’s closing price of Taishin FHC (NT$18.50) and the face value of the H-class preferred share, the enhanced exchange structure and price represents an implied consideration of NT$14.18 for each Shin Kong FHC share, representing a 25% increase compared to Taishin FHC’s previous proposal, or a 5% premium to today’s closing price of Shin Kong FHC (NT$13.50).

Since the initial announcement of the merger on 22 August 2024, Taishin FHC has further evaluated business prospects as well as potential synergies, which has reaffirmed its strong conviction that the combined entity will maximize value for both sets of shareholders, and has thus approved the enhanced merger proposal with an enhanced exchange structure and price today. The board of Shin Kong FHC has also reviewed extensively and approved the enhanced exchange structure and price. Both Taishin FHC and Shin Kong FHC are fully committed to delivering long-term value via a friendly merger.

Both parties look forward to creating a new financial holding company with complementary businesses, a balanced and steady growth profile under the leadership of the combined management teams with a shared corporate culture. Taishin FHC and Shin Kong FHC will enable the development of TS Financial Holding Co., Ltd. into a new leading brand in Taiwan's financial industry.