台新金控

1. Q: What is the proposed transaction structure? How does the offer compare to the previous one? 
問題：請問此次調整後合併交易條件為何？提高的報價與之前相比如何?

• Under the enhanced merger proposal, Taishin FHC will issue 0.6720 ordinary shares and 0.175 H-class preferred shares in exchange for each 1 ordinary share of Shin Kong FHC.
• Each H-class preferred share has a face value of NT$10, which provides cumulative annual dividends for shareholders (based on the annual dividend yield of 1.665%), and will be redeemed at issue price after 3 years.
• The H-class preferred shares will be listed on the Taiwan Stock Exchange and become publicly tradeable after listing.
• Based on the closing price on 11 September of Taishin FHC (NT$18.50) and the face value of the H-class preferred share, the enhanced exchange structure and price represents an implied consideration of NT$14.18 for each Shin Kong FHC share, representing a 25% increase compared to Taishin FHC’s previous proposal, or a 5% premium to the closing price on 11 September of Shin Kong FHC (NT$13.50).

• 根據調整後的換股價格，台新金控將發行0.6720股普通股和0.175股辛種特別股，以交換新光金控每1股普通股。
• 辛種特別股每股面額為新台幣10元，屬可累積特別股，每年分派股息（股息率為1.665%）， 3年後按發行價格贖回。
• 辛種特別股將申請在台灣證券交易所上市，並在掛牌後可開始進行公開交易。
• 依台新金控9月11日收盤價格和每股辛種特別股的面值計算，調整後轉換價格所含的新光金控每股換股價格為14.18元，相較原訂價格提高25%，相較新光金控9月11日收盤價每股13.50元之溢價為5%。

 
2. Q: Why should shareholders support this offer?
問題：股東為何應支持此要約？

• We believe the combined entity will generate significant synergies as well as growth potential in shareholders’ return, including:
    o Significant asset scale enhancement to become the 4th largest financial holding company;
    o Significant increase in market share across the banking, insurance and securities segments with clear future synergies;
    o Offering more diversified and comprehensive products and services to the customers;
    o More balanced revenue portfolio with risk diversification to withstand market uncertainties;
    o Increasing fundraising capabilities in the capital markets;
    o Expanding human capital resources and talented management team.
• As the transaction is structured as a 100% share exchange and friendly merger, the transaction has a certain timetable, and all shareholders exchange at the same time, with the ordinary shareholders and preferred shareholders exchanging at their respective equal prices. Once shareholders’ approval and regulatory approval is obtained, Shin Kong FHC will be delisted from Taiwan Stock Exchange, and both Taishin FHC and Shin Kong shareholders will immediately share all benefits from future growth and realization of synergies.
• Under the enhanced exchange structure, we provided both ordinary shares and H-class preferred share for the shareholders of Shin Kong FHC. The H-class preferred share will mature in 3 years and will provide cumulative annual dividends for shareholders. It will become publicly tradeable after listing to provide liquidity for the shareholders, and will be redeemed at the issue price in 3 years.
• We have chosen to retain cash in the combined entity by issuing H-class preferred shares instead of direct cash distribution, in order to avoid potential dilution impact on existing shareholders from the future capital increase required due to uncertainties in overall economic and financial markets. We believe that this is a better capital planning for long-term shareholders in Shin Kong FHC and better fit the long-term interest of all shareholders, thus we have included cash-like preferred shares as part of the transaction consideration. 
• We believe our enhanced offer is fair and attractive for both sets of the shareholders. We are confident in obtaining regulatory approval.   

• 我們相信合併將帶給雙方公司顯著的綜效及股東投資報酬率增長空間，包括：
    o 資產規模顯著增強成為台灣第四大金控；
    o 銀保證三業務市場占比顯著提高，未來綜效明顯；
    o 提供客戶更豐富、更全面的產品及服務；
    o 收入來源更為均衡，風險更為分散能抵禦市場不確定性；
    o 資本市場籌資能力提升；
    o 充實人才庫及經營管理階層。
• 交易架構為100%的合意換股合併，有確定的時間表，所有股東同進同出，每一種普通股及特別股股東都以各自同一價格換股。獲得股東和主管機關核准後，新光金將從台灣證券交易所下市，台新金控和新光金控的股東將共享合併後成長的獲益及綜效的充分實現。
• 本次換股架構中對普通股股東提供包含普通股加辛種特別股。辛種特別股發行期限為3年，每年會分派股息，股息是可累積的，並且申請上市以提供流動性，在3年後依發行價格贖回。
• 之所以選擇發行辛種特別股而非直接派發現金，是為合併後實體保留充裕的現金，避免未來的總體經濟及金融市場的不確定下所需要的現金增資對現有股東所造成的稀釋效應。我們認為這是對長期持有新光金股票的股東較好的資金規劃，也更符合股東的長期利益，因此我們將類現金優先股作為交易對價的一部分。
• 我們相信調整後的換股架構及價格對雙方股東都是公平且有吸引力的。我們有信心獲得主管機關的核准。

3. Q: Which company will be the surviving entity?
問題：請問合併之後的存續公司為哪一家？

• Taishin FHC will be the surviving entity and Shin Kong FHC will be the dissolving entity. Following the completion of the transaction, Shin Kong’s shares will be fully exchanged for Taishin FHC shares, and Shin Kong FHC will be delisted from the Taiwan Stock Exchange. Taishin FHC will change its name to TS Financial Holding Co., Ltd. (“TS Holdings”) post-merger.
• 台新金控為存續公司，新光金控為消滅公司。交易完成後，新光金控的普通股將全部轉換爲台新金控的股份，新光金控將從台灣證券交易所下市。合併後存續公司將更名為「台新新光金融控股股份有限公司」。

4. Q: What is the expected timetable for the merger?
問題：請問此次合併交易的預期時間表為何？

• The expected major timing milestones are as follows：
    o 9 October 2024: shareholder meeting for Taishin FHC and Shin Kong FHC.
    o Subsequent to the shareholder meeting, Taishin FHC and Shin Kong FHC will formally submit its application to the Financial Supervisory Commission to seek their approvals.
    o Upon receiving regulatory approval from the FSC, the board from both sides may authorize the Chairman to set the closing date.

• 預期未來的交易主要里程碑如下：
    o 2024年10月9日：台新金控和新光金控股東臨時會。
    o 股東臨時會通過本交易案後，台新金控與新光金控將正式向金融監督管理委員會申請。
    o 獲得金融監督管理委員會核准後，由雙方董事會授權董事長訂定合併基準日。

5. Q: What should I do if I have a bank account with Taishin Bank? My policy is still with Taishin Life/Shin Kong Life, how will the transaction affect me?
問題：如果我是台新銀行或新光銀行的存款戶，我該做什麼嗎？我的保單還在台新人壽或新光人壽，會不會影響到我？

• Following the closing, both financial holding companies and operating subsidiaries will treat “client’s rights” as our first priority to ensure a smooth transition period. After the completion of the transaction, all operating subsidiaries will operate as independent companies for now. We will confirm the merger timetable of operating subsidiaries and notify our clients regarding the transition plan in due course.

• 交易完成後，金控及旗下營運子公司都將以「客戶權益」為優先，確保順利接軌。金控交易完成後，營運子公司佔時都先將獨立公司運作，我們將會在適當的時機確認營運子公司的合併的時間表，另行通知各自的客戶關於接軌的計畫。

 
6. Q: What will happen to my GDR, Convertible Bonds, and Preferred Shares instruments and what options do I have?
問題：請問我的GDR、可轉債及特別股工具會受到何種影響？我有哪些選擇? 

• GDR: The GDR issued by Shin Kong FHC is expected to remain listed from now till the closing of the transaction, and we do not foresee any trading suspension to take place. Shin Kong FHC may elect to delist its GDR listing from the Luxembourg Stock Exchange in accordance with the Depositary Agreement. In the event of a delisting, GDR holders will be given the equivalent shares of Shin Kong’s listed common shares in exchange for the retirement of the GDRs shares. 
• Convertible Bonds: Convertible Bonds issued by Shin Kong FHC will continue to remain outstanding at their original terms from now till the closing of the transaction. CB holders’ right to exercise the option and convert its CB into Shin Kong’s shares will not be impacted. Upon closing of the transaction, it is expected that the combined entity will serve the debt obligation in place of Shin Kong FHC and the CB holders will have the option to convert the CB to the shares of the combined entity at the prevailing conversion price based on the agreed exchange ratio of the merger transaction.
• Preferred shares: Preferred shares securities issued by Shin Kong FHC will remained listed from now till the closing of the transaction. Upon closing, the combined entity will issue new preferred share securities with identical terms to the existing preferred shareholders of Shin Kong FHC in exchange for the retirement of the existing preferred shares. There will be no impact to the preferred shares issued by Taishin FHC. Shin Kong’s A-class preferred shares will be equivalent to Taishin’s G-class preferred share I, Shin Kong’s B-class preferred shares will be equivalent to Taishin’s G-class preferred share II. As agreed between both sides, the distribution of earnings shall be preferentially distributed to E-class preferred shares first, then to G-class preferred shares I, then to G-class preferred shares II, then to F-class preferred shares and finally to H-class preferred shares.

• GDR：新光金控所發行的 GDR 從現在起至合併交易交割日(即合併基準日)期間將持維持正常交易，我們預計不會發生任何停牌情況。根據存託協議，新光金控可以選擇從盧森堡證券交易所下市。如果下市，GDR 持有人將獲得新光金控於台灣證券交易所上市的普通股的等值股份，以換取 GDR 股份的取消。
• 可轉債：新光金控發行的可轉換公司債自即日起至合併暫停轉換期間開始前之期間將持續維持既有條件。CB持有者仍可行使選擇權並將其CB轉換為新光股的權利不會受到影響。交易完成後，預計台新金控將取代新光金控履行債務義務，而CB持有人將有權選擇根據換股比例，按照調整過後的轉換價格將CB轉換為台新金控股份。
• 特別股：新光金控所發行的特別股自即日起至合併交易交割日期間將持續維持上市正常交易狀態。合併交易完成之時，預計台新金控將向新光金控現有特別股股東發行條款相同的特別股股份，以換取目前所發行的特別股。台新金控發行的特別股之股東將不會受到影響；新光金控的甲種特別股對應台新的庚種特別股一、新光金控的乙種特別股對應台新金控的庚種特別股二。根據雙方簽訂的合併契約書，盈餘分派依序應特別分派予戊種特別股，再分派庚種特別股一，次分派予庚種特別股二，次分派予己種特別股，最後是辛種特別股。