CDF tender offer for China Life succeeds, bringing total holdings to 55.95%

China Development Financial (CDF, TWSE: 2883) announced that the tender offer for China Life has succeeded through acquiring the set target of 21.13% stakes by the closing date of Feb.2nd. The success will bring CDF total holdings in China Life to 55.95%, including those from the KGI Securities. It has been estimated that 25.76% of China Life outstanding shares have been tendered.

The tender offer was announced on November 27th, 2020 and it was valid between January 8th and February 2nd, 2021. It was conditional on the Fair Trade Commission (FTC) green light of the merger as well as the minimum purchase of at least 5% of total shares. Both prerequisites were met on Jan. 20th and Jan. 28th respectively.  

The offer price was set at NT$23.6 per share. As the purpose of the tender offer was not a full acquisition, and the volume of tendered shares (25.76%) exceeded CDF’s targeted volume, CDF will purchase in accordance with the prospectus. The proceeds will be paid via remittance or a bank check, no later than the settlement day (February 9th in this case, five trading days after the closing date of February 2nd). Excessive shares on tender will be returned to the original account of the tenderers on the next trading day (February 3rd).

According to CDF spokesperson Richard Chang, China Life has been an integral pillar to CDF and it has been a subsidiary since September 2017, adding a new business engine of life insurance along with commercial banking, securities and venture capital/private equity.

China Life has outperformed peers in recent years while boosting the earnings, ROE and capital efficiency of CDF. Moving forward, CDF will continue to further increase cooperation and synergies across the group, accelerate digital efforts, become the employer of choice and further build on the leadership position in ESG.