ABN Amro wins Taitung Business Bank branch auction
TAIPEI: ABN Amro said Friday it had won a government auction for the Taiwan branch network of ailing Taitung Business Bank which will add significant scale to its franchise on the island.
"ABN Amro currently has five branches in Taiwan, this acquisition allows us to expand our network to 37," Jeroen Drost, chief executive officer of ABN Amro in Asia said in a statement.
Under terms of the auction, the government's Financial Restructuring Fund will grant the winning bidder 6.899 billion Taiwan dollars (209 million US) to help turn around the financially troubled Taitung Business Bank.
Other terms of the sale were not immediately available.
ABN Amro will be able to relocate the majority of Taitung's 32 branches to its prime locations "allowing tailoring to fit the bank's mid-market strategy."
"The additional branches will enable us to accelerate our expansion programme to this target group, at a relatively low cost," Drost said.
The purchase agreement is expected to be signed within two weeks and the transaction is expected to close within 100 days of the signing.
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