A Study of the Enterprise Merger & Acquisition and Its Operational Synergy: The Case of Yuanta Securities Company

• Main Authors: Pei-Hwa Hsiao, 蕭佩華
• Other Authors: Chin-Yeu Chen
• Format: Others
• Language: zh-TW
• Published: 2013
• Online Access: http://ndltd.ncl.edu.tw/handle/63k6r4

碩士 === 世新大學 === 企業管理研究所(含碩專班) === 102 === This research conducted a case study using the secondary data and financial reports to explore the context and analyze the results for the Yuanta Financial Holding Company (Yuanta FHC) after completing merger and acquisition (M&A) process. On the 9th of April 2011, Yuanta FHC announced to merge and acquire the Taiwan-based Polaris Securities Co., Ltd., and this allowed Polaris shareholders to swap each of their shares for 0.5 shares in Yuanta FHC plus a cash dividend of NT$12.2 per share. To acquire Polaris Securities, Yuanta FHC needed to pay 26 billion NT dollars in cash and issue approximate one billion new shares. The total acquisition cost was about 48.9 billion NT dollars which was over 70% premium in net value estimation, and around 11.6% of premium percentage by converting into share price. Since it is the largest M&A case of securities firms in Taiwan, its operational and financial synergies after M&A are worth to be explored. The results showed that Yuanta FHC’s operating expenses apparently decreased after merging Polaris, and its market share was at top rank leading ahead in the banking and finance industry. Besides, the financial reports such as ROA, ROE and EPS all showed great growth rates of 37%, 42%, and 58%, respectively. It proved that the decision of M&A was quite correct and its synergy was significant.