Fubon Financial acquires Taiwan Life Unit from ING for $600 million
Clients Fubon Financial Holding Co., Ltd.
Jones Day advised Fubon Financial Holding Co., Ltd. in its acquisition of 100% of ING Life Insurance Co., Ltd., ING’s life insurance subsidiary in Taiwan. The parties signed the agreement on October 18, 2008. The purchase price is US$600 million, payable by (i) 5% of new shares of Fubon issued at the closing with the valuation of the then current 20-trading day average closing price per share on Taiwan Stock Exchange and (ii) cash for the balance; the cash consideration will in turn used to subscribe to debentures with the principle in the equal amount due 2016 issued by Fubon. Fubon has an option to issue additional debentures up to US$350 million to ING by end of 2009. The additional debentures will qualify as Tier II capital for Fubon's capital adequacy purposes.