Standard Chartered to buy Hsinchu Bank

The deal was regarded as another step London-based bank expands its business in Asia, after it finished the acquisitions for Korea First Bank and Palestine Union Bank Ltd.

After the transaction was finished, Standard Chartered will become the largest foreign bank in Iseland and Taiwan turn to the lender's forth largest income source following Hong Kong, South Korea and India.

As the seventh largest bank in Taiwan, Hsinchu Bank has 82 branches islandwide, while Standard Chartered has only three. However, Husinchu's fiscal report indicates the bank lost 2.73 billion New Taiwan dollars by the end of June this year, dragged by the bad-loan of credit card.

Standard Chartered shares were suspended yestoday in HKex with HK$202.6 each share. Husinchu's stocks price rose by 6.88% to close at 18.65 New Taiwan dollar.

To pay the acquistion, Standard Chartered yestoday sold 48.50 million shares in London market at the price of £13.75 to raise £667 million (about HK$9.36 billion).