TAIPEI (Taiwan News) — CTBC Financial Holding (CTBC) launched a takeover bid for Shin Kong Financial Holding (SKFH) on Friday (Aug. 23), offering NT$131.4 billion (US$4 billion) to acquire a 51% stake.

The move comes after SKFH and Taishin Holdings (Taishin FHC) approved a merger plan on Thursday (Aug. 22). The two companies had outlined their share exchange ratio of each SKFH share for 0.6022 Taishin FHC shares.

CTBC offered NT$14.55 per share of SKFH stocks. The price is a 16.8% premium over SKFH's closing price on Friday, per CNA.

SKFH and Taishin FHC shareholders will meet on Oct. 9 to discuss the merger. The record or cutoff date for the meeting is Sept. 10.

CTBC's offer includes a combination of shares and cash. Shareholders will receive 0.3132 shares of CTBC and NT$4.09 in cash for each SKFH share.

CTBC must first apply for approval from the Financial Supervisory Commission (FSC). It plans to submit its application Monday (Aug. 26) or Tuesday).

The commission has 15 business days to review the application. If the commission does not object, it is considered approved.