Taishin Financial’s share price soared 14% on the first day after the announcement of its link-up with Asian private equity firm Newbridge Capital, and gave a shot in the arm to Taiwan’s banking sector. Finally, it seemed, someone wanted to invest in a Taiwanese bank.
Newbridge’s investment amounts to NT$27 billion (US$836 million), split into three parts: common shares (30% of the total), convertible preferred shares (44%) and convertible bonds (26%). All three types of instruments have a mandatory lock-up period of three years.
“We have...
