Taiwan Life Insurance has agreed to extend the deadline for completing a deal in which CTBC Financial Holding aims to acquire the life insurer.
In a statement filed with the Taiwan Stock Exchange late Friday, Taiwan Life said the company’s board of directors agreed in a meeting held that day to extend the transaction deadline to June 30.
The approved deadline extension reignited market hopes that CTBC Financial, one of Taiwan’s leading financial holding companies, will take Taiwan Life fully into its corporate umbrella. CTBC Financial's plans are to broaden its insurance operations.
Shares of Taiwan Life on Thursday plunged by the maximum daily decline of 7%, after one of its major shareholders expressed opposition to the acquisition deal.
On Friday shares of Taiwan Life fell by an additional 1.84% before the Taiwan Life board meeting began. The share price decline came amid fears that if the acquisition deal falls apart, the life insurer would not be able to take advantage of CTBC Financial's broad network to sell products.