Baker & McKenzie advises CTBC FHC on acquisition of Tokyo Star Bank
06 November 2013
Category: News, Asia, Japan, Taiwan
By Asia Asset Management
Baker & McKenzie has acted for Taiwan-based CTBC Financial Holding Company (CTBC FHC) on its acquisition of a 98.16% stake in Japan-based Tokyo Star Bank for 52 billion yen (US$528.2 million) of cash considerations.
CTBC Bank, the key subsidiary of CTBC FHC, will acquire the stake from Shining Star Godo Kaisha and Allied Holdings Godo Kaisha, who are the current shareholders of Tokyo Star Bank in Japan. The transaction will be filed with regulators in Taiwan and Japan, and is expected to close upon the receipt of both shareholder and regulatory approvals.
CTBC FHC was established in May 2002, with over 10,000 employees, and assets in excess of NT$2 trillion (US$68 billion). CTBC Bank has 147 branches throughout Taiwan and 68 overseas outlets located in America, Canada, Japan, India, Indonesia, the Philippines, Thailand, Vietnam, Hong Kong, Singapore, and mainland China. The collection makes it Taiwan’s most internationalised financial institution.
The Baker & McKenzie team advising CTBC is led by Taiwan-based partner Joseph Fu, supported by associates David Lin and Hsin-Che Wu, and Tokyo-based partner Norihiro Sekiguchi with support from associates Masato Honma, Jonathan Mukai and Junya Suzuki. The team acted as transaction counsel with primary responsibility for preparing and negotiating the transaction agreements, advising on related legal and regulatory issues and general transaction management.
Commenting on the deal, Mr. Fu stated: “By decisively expanding into the banking market of Japan, CTBC FHC has proved that it is a leading financial services company across the Asia-Pacific region. We are delighted to act as the counsel to CTBC FHC on such a milestone deal for not only CTBC FHC but also the financial industry of Taiwan."
Mr. Sekiguchi added: "This is the first acquisition of a Japanese bank made by a foreign bank entity. It is telling of the changing times, and we hope that strategic acquisitions in the banking sector continue to grow – both into and outside of Japan."