longreach-buys-ailing-taiwanese-bank

Longreach buys ailing Taiwanese bank

Private equity firm Longreach pays $694 million to acquire a controlling stake in loss-making EnTie Commercial Bank of Taiwan.
Consolidation in TaiwanÆs banking sector continues as private equity firm The Longreach Group announced at the end of last week that it will invest NT$23 billion $694 million to acquire 51% of EnTie Commercial Bank.

Longreach will acquire the mid-sized Taiwanese bank which has 53 branches and NT$313 billion in total assets as at December 2006. EnTie made a pre-tax loss of NT$2.8 billion in the first quarter of 2007 and a loss of NT$5.9 billion for calendar 2006. Sources say that the agreed price represents a multiple of 1.4 times book value, or 2.5 times if provisions and losses from EnTie's consumer loans are taken into...
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