CDFHC to acquire 100% control of China Life

This will effectively delist the insurer.

Taiwan-headquartered China Development Financial Holding Corporation (CDFHC) \announced plans for a share swap transaction, where CDFHC will acquire all remaining outstanding shares of China Life Insurance through the issuance of common shares and preferred shares, as well as a cash payment to all of China Life’s shareholders.

CDFHC will also acquire the remaining 44.05% stake from external parties, which excludes the 8.66% stake currently held by KGI Securities. An extraordinary shareholder meeting on 1 October will take place to discuss the share swap.

CDFHC said that achieving 100% ownership of China Life has always been its strategic goal and the share swap transaction enables CDFHC to accelerate this process.

Under the transaction, every common share in China Life will be exchanged for 0.80 common shares and 0.73 preferred shares in CDFHC, and NT$11.5 in cash. This consideration is based on the ex-dividend and ex-rights share price of both parties, taking into account the NT$0.4 cash dividend and NT$0.4 stock dividend per share to be distributed by China Life, and the NT$0.55 cash dividend per share paid by CDFHC on 10 August.

According to CDFHC, it expects China Life to become a wholly-owned subsidiary of CDFHC by the end of the year and be delisted in accordance with the law.