Taiwan's CTBC Financial to buy a Tokyo lender for $530 mln
TOKYO Oct 31 (Reuters) - Taiwan's CTBC Financial Holdings said on Thursday it had agreed to buy Tokyo-based local lender Tokyo Star Bank from the current shareholders including U.S. investment fund Lone Star for 52 billion yen ($530 million), becoming the first foreign bank to acquire a Japanese lender.
CTBC Financial, Taiwan's biggest credit card issuer, will buy 98.2 percent of Tokyo Star Bank, pending approval from CTBC Financial shareholders and regulators in Japan and Taiwan.
CTBC Holdings President Daniel Wu said in a statement Japan's banking industry had stable profitability with relatively low investment risk.
Current shareholders Lone Star and others took over shares in Tokyo Star in 2011 after a fund managed by Japanese private equity firm Advantage Partners gave up ownership of the bank due to trouble repaying loans.
Other Tokyo Star shareholders include a Tokyo-based lender Shinsei Bank and France's Credit Agricole SA.
CTBC Financial also owns CTBC Bank. The banking group said it will tap opportunities in Japan's wealth management business, cross-boarder trade finance and investment consulting businesses through Tokyo Star Bank which has 1,256 employees.
($1 = 98.1450 Japanese yen) (Reporting by Junko Fujita; editing by David Evans)
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