Taichung Commercial Bank (TCB) announced Saturday that its board of directors has approved a plan to acquire California-based American Continental Bank, as part of an effort to expand its global reach.
Pending regulatory approvals, TCB said, it will create a subsidiary to acquire American Continental Bancorp, the holding company of American Continental Bank, through a reverse triangular merger.
With the merger, the Taiwanese bank said, it will hold a 100 percent stake in American Continental Bancorp, which is headquartered in the City of Industry, California.
TCB said it plans to acquire the American bank at US$41.48 per share but the actual cash consideration will be determined at the closing of the deal.
In a press release Friday, American Continental Bancorp said the cash transaction is valued at approximately US$82.1 million, based on the US$41.48 per share price calculated as of June 30.
The transaction is expected to be competed early in the first quarter of 2023, according to the press release.
Founded in 2003, the California bank offers primary services of commercial real estate loans, apartment loans, construction loans, small business loans, and residential mortgage loans.
Source: Focus Taiwan News Channel