Carlyle Exits Taiwan’s Ta Chong Bank Via Trade Sale

Taopei-based Yuanta Financial Holding Co. has agreed to acquire 100% of Ta Chong Bank Ltd., a Taiwanese lender backed by the Carlyle Group, for approximately NT$56.6 billion (US$1.7 billion), according to a company announcement.

The cash and stock deal provides Carlyle a much needed exit from an investment it made eight years ago.

In 2007, Carlyle invested NT$21.5 billion (US$670 million) in Ta Chong Bank.  Carlyle owned 17.2% of the Taiwanese lender as of June, according to the company’s filings.

Ta Chong Bank, listed in Taiwan, has reported net income declines in two of the past three calendar years.

Founded in 1992, Ta Chong Bank operates 66 branches in Taiwan.