Fubon Financial Holding Co., Ltd. (TSEC:2881) made a bid to acquire JihSun Financial Holding Co.,Ltd. (GTSM:5820) from Sipf B.V. and others for TWD 49 billion on December 18, 2020. The consideration for this tender offer shall be completely be in cash, with an acquisition price of TWD 13 per share. As of March 23, 2021 Fubon has acquired 53.8% stake in JihSun Financial from Sipf and others. The Fubon Financial Holding Co., Ltd. will use own available funds and the issuance of commercial papers. Fubon Financial Holdings plans to raise short-term funds in order to support the tender offer price and plans to start to conduct capital market fundraising in the second quarter of 2021. The initial plan is to issue 60% common shares and 40% preferred shares and whether the fundraising can be carried out or not will be affected by the issue price, the stock market and bond market conditions, the financial market fluctuations and investors' willingness. Upon the completion of transaction, Jih Sun will be integrated into the Fubon Financial's group resources and management, thereby enhancing its overall operation efficiency and ability to provide more comprehensive and diversified financial services. Upon the completion of the merger, Fubon Financial will be the holding company of Jih Sun's all subsidiaries, and does not rule out any further integration of organization, operation, business, financial affairs, human resources and IT systems among Fubon Financial's group subsidiaries, thereby further improving Fubon Financials' overall competition within the industry.

Fubon Financial shall not purchase any tendered JihSun common shares if the minimum offer is not reached or if the Fair Trade Commission does not grant the approval. The completion of this tender offer is subject to the approval of Fair Tarde Commission and board of Fubon Financial approved this tender offer. Fubon Financial Holding Co., Ltd. will apply for merger approval on December 21, 2020. As on January 4, 2021, independent experts concluded the public tender offer price is not reasonable and accordingly board of directors does not recommend the shareholders to accept the offer. The scheduled period of the offer is from December 22, 2020 to February 1, 2021. However, the Company may declare to the Financial Supervisory Commission and announce an extension of the tender offer period in accordance with relevant laws, though the extension period shall not exceed 50 days. On January 5, 2021, the review committee held a meeting to provide their opinion on fairness of tender offer and rationality of the sources of funds. The board of directors of Jihsun Financial along with committee recommends the shareholders of the to make prudent assessment regarding to participate in the tender or not to participate in it. As on February 24, 2021, FTC approved the transaction. As of March 23, 2021 all the conditions including the achievement of minimum tender have been satisfied. The transaction is expected to close on March 23, 2021.

Shu-Fen He of Ernst & Young UK, Legal Advisory Arm acted as legal advisor to Fubon Financial Holding Co., Ltd. Huang Hsin-Chung of APLUS-CPA Firm acted as accountant and Huang Hsin-Chung of APLUS-CPA Firm, Investment Banking Arm acted as fairness opinion provider to JihSun Financial Holding Co.,Ltd. Tsai Wen-Jing of KW CPA Firm, Investment Banking Arm acted as fairness opinion provider to JihSun Financial Holding Co.,Ltd. Mitsubishi UFJ Morgan Stanley Securities is advising Shinsei Bank, Limited

Fubon Financial Holding Co., Ltd. (TSEC:2881) completed the acquisition of 53.8% stake in JihSun Financial Holding Co.,Ltd. (GTSM:5820) from Sipf B.V. and others on March 23, 2021. Total consideration has been remitted to a designated account by the mandated institution, Mega Securities Co., Ltd.on March 24, 2021. The Sipf B.V. and others will receive the tender offer consideration within 5 business days (inclusive) following the expiration of the tender offer period.