China Development Financial Holding Corporation (hereinafter referred to as “CDF”) convened an extraordinary shareholders’ meeting today and approved the acquisition of China Life as a wholly-owned CDF subsidiary through a share swap method. The approval from the FSC is expected to be obtained in the next few months and then the share swap can be completed by year end. With this important acquisition, CDF will further accelerate the development of its banking, securities, private equity, asset management, and insurance businesses, enhance the group's competitiveness and create synergies, allowing CDF to realize its vision of becoming a leading financial institution in Asia by leveraging innovative solutions and its entrepreneurial spirit.
CDF’s extraordinary shareholders’ meeting approved the share swap plan to issue common shares, preferred shares, and cash to acquire all outstanding shares of China Life from all shareholders. The share swap will acquire 44.05% of China Life shares externally, not counting the 8.66% shares already held by KGI Securities. The equal price of this share swap shall equal 0.80 CDF common shares, 0.73 CDF preferred shares, and NT$11.5 in cash for every China Life common share. The equal price is based on the price after ex-rights and ex-dividends, including the cash dividend of NT$0.4 already released and stock dividend of NT$0.4 to be released by China Life, and the cash dividend of NT$0.55 already released by CDF.
Acquiring 100% of China Life shares will also allow CDF to further accelerate the ongoing implementation of the ABCDE Strategy: Accelerate Digital, Become Employer of Choice, Customer Focus, Drive Growth, and Execution Excellence and become a complete financial holdings company with all 4 major businesses; life insurance, banking, securities and venture capital/private equity, in it’s portfolio.
