TAIPEI (Taiwan News) — SinoPac Holdings and King's Town Bank announced Friday a share exchange agreement under which SinoPac Holdings will acquire 100% equity in KTB, in a transaction valued at approximately NT$60 billion (US$1.82 billion).

SinoPac Holdings plans to merge its subsidiaries, SinoPac Bank and KTB, within a year of completing the acquisition. The transaction comprises 50% cash and 50% stock, with each KTB share exchanged for NT$26.75 (81 cents) in cash and 1.15 SinoPac Holdings common shares, per CNA.

SinoPac Bank was established in 2006 through an equal merger between SinoPac Holdings' two subsidiary banks. It now operates 125 branches across Taiwan, according to SinoPac Holdings.

SinoPac Holdings Chair Stanley Chu (朱士廷) said Friday’s closing stock prices were NT$23.6 for SinoPac Holdings and NT$49.55 for KTB, valuing each KTB share at NT$53.89, an 8.8% premium. The deal is expected to enhance operational efficiency and customer offerings.

Chu highlighted the complementary nature of the two banks, with minimal overlap in branch locations and strong north-south synergies. After the merger, the combined entity will have 191 branches across Taiwan.

The merger will increase total assets to NT$3.1 trillion (US$94.4 billion). KTB noted that both banks originated as SME-focused institutions, sharing similar corporate cultures and local service expertise.

The company said that joining SinoPac Holdings will enable KTB to provide its customers with a broader and more diverse range of financial products and services.