China Development Financial Holding Corporation (TWSE:2883) entered into share swap agreement to acquire additional 44.05% stake in China Life Insurance Co., Ltd. (TWSE:2823) for TWD 77.6 billion on August 12, 2021. Under the terms, China Development TWD 11.5 plus 0.80 shares of China Development common shares and 0.73 shares of China Development preferred shares. Funding will be done by Cash from subsidiary upstream distributions, issuance of corporate bonds, and short-term bridge loans. The transaction will be submitted for competent authority approval upon approvals by both China Development and China Life EGM and Board approval. China Life will apply for delisting after completion.

The share swap will acquire 44.05% of China Life shares externally, not counting the 8.66% shares already held by KGI Securities. Acquiring 100% of China Life shares will also allow CDF to further accelerate the ongoing implementation of the ABCDE Strategy: Accelerate Digital, Become Employer of Choice, Customer Focus, Drive Growth, and Execution Excellence and become a complete financial holdings company with all 4 major businesses; life insurance, banking, securities and venture capital/private equity, in it's portfolio.

Following the merger, China Development Financial is to relocate its offices to share office space with China Life Insurance. The shareholders meeting will be held by China Life Insurance and China Development Financial Holding on October 1, 2021, to approve the transaction. Transaction is approved by the shareholder of both China Development Financial Holding Corporation and China Life Insurance Co., Ltd. The approval from the FSC is expected to be obtained in the next few months and then the share swap can be completed by year end. As per update on November 16, 2021, the record date for the transaction has been set as December 30, 2021. Hsiao-Fen Huang of PricewaterhouseCoopers Taiwan (PwC) provided fairness opinion to China Development. Tu Mark and Chiang Alex of Baker & McKenzie, Taipei acted as legal advisor to China Life Insurance Co., Ltd

China Development Financial Holding Corporation (TWSE:2883) completed the acquisition of additional 44.05% stake in China Life Insurance Co., Ltd. (TWSE:2823) on December 30, 2021.