Four state-run banks to merge securities trust units under First Financial
The boards of four state-controlled banks have approved the merger of their securities investment trust subsidiaries, giving First Financial Holding a majority stake in the new entity.
Executives from First Financial Holding Co., Mega Holdings, Taiwan Cooperative FHC and Hua Nan Financial announced that their securities investment trust subsidiaries will combine to form a new company named First Securities. The transaction will be carried out entirely through a stock swap, issuing 59,286,927 new shares and allocating a 50.3% stake to First Financial, while Mega, Taiwan Cooperative and Hua Nan receive 30.4%, 9.8% and 9.5% respectively.
Governance will consist of a seven-member board with four directors from First Financial and one each from the other banks, plus two supervisors. The merger must obtain approval from the Financial Supervisory Commission's Banking Bureau, Securities and Futures Bureau and the Fair Trade Commission, with an application expected by month’s end. Completion is planned for Jan. 1 2028. Combined assets under management total roughly NT$500 billion, which could lift the new firm into the top ten domestic securities trust providers.
Why it matters
The consolidation could reshape Taiwan's securities trust market and create a top-10 player.
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