Sinopac's U.S. unit sale may collapse if it doesn't provide more details - source

SINOPAC FINANCIAL HOLDINGS

16/06/2017 05:52

TAIPEI, June 16 (Reuters) - Sinopac's $340 million sale of 
its U.S. unit to Cathay General Bancorp  CATY.O  will not be 
approved by the Taiwan financial regulator if Sinopac does not 
submit additional satisfactory paperwork to the watchdog, a 
source with the regulator said. 
    The regulator's request throws the first major sale of a 
Taiwan-owned banking unit to a U.S. bank in jeopardy as the 
deadline to close the deal draws near.  
    Cathay and Sinopac Financial Holdings  2890.TW  are under 
pressure to complete the deal as it has been a year since Cathay 
said it would acquire Sinopac's U.S. unit. 
    Los Angeles-based Cathay received approval from the U.S. 
Federal Reserve in March with a deadline to close the deal early 
next week.  urn:newsml:reuters.com:*:nL2N1GX1KR  
    "We have asked them to provide additional paperwork. If they 
don't do that, they automatically forfeit the deal," a Financial 
Supervisory Commission (FSC) official told Reuters, who asked 
not to be identified.  
    Sinopac needs to explain the full "terms of the agreement" 
in a satisfactory way, said the official, declining to 
elaborate.  
    A spokesman for Sinopac said the company would submit the 
additional paperwork "soon" and hoped the deal can be closed. 
    The FSC suspended a review of the acquisition application 
earlier this month, according to a Sinopac statement, which did 
no provide further details.  
    Cathay did not reply to questions from Reuters via email. 
 
 (Reporting by Faith Hung; Editing by Jacqueline Wong) 
 ((faith.hung@thomsonreuters.com; 8862 2500 4893; Reuters 
Messaging: faith.hung.thomsonreuters.com@reuters.net)) 
 
Keywords: SINOPAC CATHAYGENERAL/