09.24.2001
Taishin targeting Dah An for merger

• Development: Taishin International Bank and Dah An (2829.TT) are planning to merge. Potentially, the deal may involve a swap: one share of Dah An for 0.45 shares of Taishin, a 19% premium to Dah An’s Friday, 21 Sept. closing price. Taishin may also absorb Dah An into its financial holding company pending approval in Oct.’s shareholders’ meeting.

• Analysis: Taishin is targeting various banks for merger to boost market share. As Dah An operates similar businesses to Taishin, we believe the merger will benefit the latter by boosting share of the loans market to 2.6% from 1.4%. However, Dah An’s NPL ratio of 4.68% may be added burden to Taishin’s problem assets.

• Primasia View: We believe benefits from the deal will only materialize in the long run.