TOKYO Taiwan's Chinatrust Commercial Bank Co Ltd CTRUSC.UL has agreed to buy Japanese lender Tokyo Star Bank for 52 billion yen ($519 million) from U.S. investment fund Lone Star and other shareholders, the Nikkei business daily reported on Thursday.
Privately owned Tokyo Star Bank would be the first Japanese lender to be bought out by a foreign bank, the newspaper reported. The acquisition is still pending regulatory approvals and is expected to be completed in September or October.
Both Tokyo Star Bank and Chinatrust Commercial Bank declined to comment on the Nikkei report. Lone Star officials in Tokyo were not immediately available to comment.
Chinatrust bank is a unit of CTBC Financial Holding Co Ltd (2891.TW), Taiwan's biggest credit card issuer.
Lone Star became the biggest shareholder in Tokyo Star Bank in 2011 after entities set up by Japanese private equity firm Advantage Partners gave up the ownership of the bank due to problems in repaying their debt.
Other shareholders include Tokyo-based Shinsei Bank (8303.T) and French bank Credit Agricole SA (CAGR.PA). ($1 = 100.1650 Japanese yen)
(Reporting by Junko Fujita; Editing by Miral Fahmy)