Baker & McKenzie has acted for Taiwan-based CTBC Financial Holding Company Ltd. (“CTBC FHC”) on its acquisition of a 98.16% stake in Japan-based Tokyo Star Bank for JPY 52 billion of cash considerations.
CTBC Bank, the key subsidiary of CTBC FHC, will acquire a 98.16% stake in Tokyo Star Bank 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. Through the transaction, CTBC Bank will become more competitive going forward by acquiring a controlling stake in a nationwide licensed bank (Tokyo Star Bank) in Japan to further expand in the Northeast Asia region.
CTBC FHC was established on May 17, 2002, with over 10,000 employees, and assets in excess of NT$2 trillion. 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, making them Taiwan’s most international financial institution.
The Baker & McKenzie team advising CTBC FHC 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, Joseph 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.” Norihiro 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.”
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