FSC approves CDF’s tender offer to add 21.13% stakes of China Life

China Development Financial (hereinafter “CDF”, 2883 TT/2883.TW) proposed to purchase 1bn outstanding common shares (or 21.13%) of China Life via a tender offer on November 27th, 2020. The acquisition was approved by the Financial Supervisory Commission (FSC) on January 4th, 2021, and CDF's Board of Directors has convened a Board meeting to finalize the terms and conditions of the tender offer today.  

The offer price is set at NT$23.6 per share, conditioned on the minimum tender of at least 237mn (or 5%) of the outstanding common shares of China Life. The tender offer will begin on January 8th, and end on February 2nd (the expiry date). CDF may apply for an extension from the FSC. Conditions of a successful tender offer should include the acquisition of the minimum tender and approval by the Fair Trade Commission before the expiry date.

 

China Life shareholders who intend to participate in the tender offer may go to securities brokers or custodian banks where their accounts were opened to make the tendering from January 8th. CDF will purchase in accordance with the mechanisms stated in the tender offer prospectus if the offeree shares tendered exceed the expected volume to be acquired  Tendered shares fewer than three shares will not be accepted as the proceeds may not be enough to pay the transaction tax, service fees for TDCC (Taiwan Depository and Clearing Corp.) and securities brokers, interbank remittance fees, or postage for registered mail and other related fees.

Upon satisfactory completion of all tender offer conditions, CDF shall make the payment, via remittance or a bank check, no later than the settlement day (February 9th in this case, five trading days after the expiry date of February 2nd). Excessive shares on tender will be returned to the original account of the tenderer on the next trading day (February 3rd in this case) of the expiry date from the special account of President Securities Corp.  

Tenderers may review the prospectus of the tender offer from TWSE's website at http://mops.twse.com.tw/mops/web/t162sb01, download the file from the website of President Securities Corp. at http://www.pscnet.com.tw/, or call the tender offer service line of President Securities Corp. at (02) 2746-3797.