Taiwan Firm Buys Taishin Financial Stake from Newbridge

Taiwan financial holding firm Cathay Financial has paid $155 million for a 3.45% stake in Taishin Financial, buying the stake from buyout firm Newbridge Capital, Reuters reported. U.S.-based Newbridge Capital invested T$27 billion in 2006 for a 18 percent stake in Taishin and was its largest single foreign stake holder, Reuters wrote.

(Reuters) – Cathay Financial, Taiwan’s largest financial holding firm, has bought a 3.45 percent stake in Taishin Financial for T$4.7 billion ($155 million) from private equity fund Newbridge Capital .

The investment, the first such for Cathay, could be a sign that Taiwan’s over-crowded banking industry would start to consolidate.

Cathay paid T$18.3 per share for 259 million convertible preferred shares, about 74 percent more than Taishin’s closing price of T$10.5 on Tuesday.

U.S.-based Newbridge Capital invested T$27 billion in 2006 for a 18 percent stake in Taishin and was its largest single foreign stake holder. Billionaire investor George Soros also held a stake in Taishin.

Shares of Cathay ended at T$33.05 on Tuesday.