Taipei, March 19 (CNA) E. Sun Financial Holding Co., a leading Taiwanese financial holding company, has formally decided to acquire a more than 90 percent stake in U.S.-based Prudential Financial’s subsidiary in Taiwan.
At a news conference on Tuesday, E. Sun Financial President Chen Mao-chin (陳茂欽) said a plan to acquire a 91.2 percent stake in PGIM Securities Investment Trust Enterprise in Taiwan for about NT$2.76 billion (US$83.64 million) was approved by E.Sun’s board of directors.
E. Sun Financial and Prudential Financial signed a memorandum of understanding in November 2024 that paved the way to the acquisition, Chen said.
The acquisition is expected to boost E. Sun Financial’s wealth management business at a time when the Taiwan government has set sights on transforming the country into a regional wealth management hub.
In 2008, E. Sun Financial disposed of its investment trust assets, but the company decided earlier this to rebuild its presence in the field by acquiring PGIM Securities Investment Trust, Chen said.
The move should also help E. Sun Financial better integrate its existing banking and securities businesses to create synergies and sharpen the company’s competitive edge, he said.
With the sale of its unit, Prudential Financial will withdraw from the Taiwan market, local news media reported. The deal with E. Sun Financial comes after Prudential Financial sold its insurance assets to Taishin Financial Holding Co. in 2020.
According to E. Sun Financial, PGIM Securities Investment Trust, which has assets under management (AUM) totaling about NT$160.8 billion, specializes in raising funds for mutual funds and serves as a sale agent in Taiwan for foreign-issued mutual funds.
Chen said E. Sun Financial will acquire the Prudential unit with cash, which will come from the company’s existing cash reserves or sales of short-term commercial paper.
The acquisition is unlikely to affect the company’s future dividend payouts to its shareholders, he said.
E. Sun Financial will file an application with the Financial Supervisory Commission (FSC), the top financial regulator in Taiwan, for regulatory approval as soon as possible, Chen said.
