Fubon Financial

Fubon FHC: The tender offer creates a multiple win scenario and sincerely urges JihSun FHC’s shareholders to tender

2021.01.06

Fubon Financial Holding Co., Ltd. (“Fubon FHC”) reiterates its view that the tender offer expects to create a win-win-win scenario for JihSun FHC’s shareholders, customers and employees in response to the announcement by the board of directors of JihSun Financial Holding Co., Ltd. (“JihSun FHC”) that it recommends shareholders to make prudent assessment regarding to participate in the tender or not. Fubon FHC sincerely urges JihSun FHC’s shareholders to tender their shares within the prescribed time period.

Fubon FHC has offered to purchase JihSun FHC common shares at NT$13 per share (the “Offer”), which represents a 24.8% premium over the average closing price over the 20 trading days prior to the announcement date on December 18. The Offer provides fair and equal terms to all shareholders, allowing majority and minority shareholders an opportunity to realize their gains. Additionally, Ernest & Young issued a fairness opinion report on the Offer price, which found that the premium is in line with other Taiwan tender offer precedents and also financial industry control transactions in other Asian countries over the last several years, as well as the price was reasonable to the shareholders of both JihSun FHC and Fubon FHC.

Fubon FHC anticipates providing more comprehensive services to JihSun FHC’s customers through integration with the Fubon Group’s resources and multi-sector service platform. Fubon FHC reiterates its belief that employees are a company’s most important asset and respects employees’ existing rights and benefits. JihSun employees will have access to more opportunities across the Fubon Group and can join in Fubon FHC’s future growth.

Fubon FHC emphasizes that it is sincere in launching the tender offer to acquire JihSun FHC, and supports the Taiwan government’s financial holdings merger policy and advances industry consolidation and create synergies. Fubon FHC expects that successful merger of JihSun FHC will not only lead to stronger banking and securities businesses and realize scale economies, but also bring benefits to JihSun FHC’s shareholders, customers and employees. Fubon FHC sincerely urges JihSun FHC’s shareholders to support the Offer by tendering their shares, and create a winning outcome.