Taiwan's Cathay Fin buys stake in Taishin from Newbridge

Cathay Financial has bought a 3.45 percent stake in Taishin Financial for T$4.7 billion or $155 million from private equity fund Newbridge Capital.

The investment, the first such for Cathay, could be a sign that Taiwan's over-crowded banking industry would start to consolidate.

Cathay paid T$18.3 per share for 259 million convertible preferred shares, about 74 percent more than Taishin's closing price of T$10.5. .

U.S.-based Newbridge Capital invested T$27 billion in 2006 for a 18 percent stake in Taishin and was its largest single foreign stake holder.

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