Taiwan's Fubon to buy 80% of mainland bank

Taiwan asset manager Fubon Financial (2881.TPE) will acquire an 80% holding in the mainland’s Firstsino Bank for US$1.03 billion (RMB6.45 billion), Reuters reported. The purchase demonstrates strengthened banking links across the Taiwan Straight. Fubon will acquire the holding from Taiwan’s clothing retailer Pou Chen Group and Hong Kong’s Wing Hang Bank (0302.HKG, WHK.FRA), the firm said on Thursday. Fubon will also take part in a rights issue made by Firstsino. The agreement will provide Fubon with 13 outlets in large towns in China, adding to its 31 in southeastern Fujian province through its holding in Xiamen Bank. After the completion of the deal, Shanghai Pudong Development Bank (600000.SH) will own the remaining 20%, diluted from its current stake of 30%.  JPMorgan Chase Bank is the financial advisor on the transaction, which is subject to regulatory approvals. Fubon’s shares rose 0.3% on Thursday prior to the press release.