Cathay Financial Holding’s bid to fully acquire Bank of Nova Scotia’s Malaysian unit, Scotiabank Malaysia, has been approved by Taiwan’s Financial Supervisory Commission (FSC).
Banking Bureau Deputy Director-General Lu Hui-Jung said the transaction would make Cathay Financial the first Taiwanese company to establish a foothold and tap into Malaysia’s ringgit-denominated businesses.
Cathay Financial seeks to acquire Scotiabank Malaysia for MYR1.1 billion (US$258.58 million) through its subsidiaries, with Cathay Life Insurance and Cathay United Bank splitting the acquisition at 49 percent and 51 percent, respectively.
Scotiabank Malaysia was established in 1994 and operates a branch in Kuala Lumpur. It also operates two corporate banking offices in Johor Bahru and Penang, employing a total of 71 people.
The bank specializes in trade financing services to largest corporations and state-run enterprises in Malaysia. The acquisition gives Cathay Financial services access to 1,750 Taiwanese businesses operating in the area. Taiwanese banks have limited presence in Malaysia.
Cathay Financial Holdings has established its presence in Taiwan on December 31, 2001, with registered capital of NTD$120 Billion.
Composed of insurance, securities, banking and other diversified financial institutions, Cathay Financial Holdings has become a full-functioning financial platform.
With robust sales forces and committed financial advisors across Taiwan, Cathay is to develop its cross-selling strategy and provide a one-stop shopping convenience for its customers. – BusinessNewsAsia.com