Taiwan's Chinatrust Commercial Bank is in the final stage of talks to acquire Japanese Tokyo Star Bank from US investment fund Lone Star and other shareholders.
A Tokyo Star Bank spokesperson declined to comment on the immediate impact of the takeover on the bank's structured deposit business in Japan.
The Taiwanese bank is set to become the first foreign financial institution in Japan to wholly own a local bank. According to Nikkei Business Daily, the value of the sale will be around JPY52bn ($519m).
The acquisition is awaiting regulatory approval and is expected to be completed in September or October. "We would prefer not to comment until everything is set in stone as we are still in talks with the shareholders regarding working details," the spokesperson told SRP.
According to SRP's database, Tokyo Star Bank has issued three structured deposits worth $49m so far this year. Of these, the capital-protected Migikataagari ($18m) is linked to the Japanese interest rate, while Offset Term Deposit ($15.5m) and Jump Up Foreign Deposit ($15.5m) are linked to currency pairs.
There are currently 309 structured products from Tokyo Star Bank recorded in SRP's Japanese database, with the majority being flow products.
Tokyo Star Bank was founded in 2001, emerging from the bankruptcy of Tokyo Sowa Bank. The majority of Tokyo Star Bank shares are currently owned by Shining Star and Allied Holdings.