SHIN KONG FINANCIAL HOLDING CO LTD (REG S) - SKFH intends to invest in SKL common shares

Nov 27, 2009 (PR Newswire Europe via COMTEX) --
SKFHF | Quote | Chart | News | PowerRating -- e>Company code: 2888

No: 1

Subject: SKFH intends to invest in SKL common shares for NT$18 billion

To which item it meets--article 2 paragraph xx: 20

Date of events: 2009/11/27

Contents:

1.Name and nature of the subject matter (if preferred shares,

the terms and conditions of issuance shall also be indicated,

e.g.dividend yield): SKL common shares

2.Date of occurrence of the event: 2009/11/27

3.Volume, unit price, and total monetary amount of the transaction:

(1) Volume: 800,000,000 shares of common shares

(2) Unit price: NT$22.5 per share

(3) Transaction amount: NT$18,000,000,000

4.Counterpart to the trade and its relationship to the Company

(if the trading counterpart is a natural person and furthermore

is not an actual related party of the Company, the name of the

trading counterpart is not required to be disclosed):

(1) Counterpart: Shin Kong Life Insurance Co., Ltd.

(2) Relationship to the Company: SKFH's 100% owned subsidiary

5.Where the counterpart to the trade is an actual related party,

a public announcement shall also be made of the reason for choosing

the related party as trading counterpart and the identity of the

previous owner (including its relationship with the company and the

trading counterpart), price of transfer, and date of acquisition:

(1) The reason for choosing the related party as trading counterpart: To
enhance SKL's financial structure and capital adequacy.

(2) The previous owner, price of transfer, and date of acquisition: N/A

6.Where a person who owned the property within the past five years

has been an actual related person of the company, a public

announcement shall also include the dates and prices of

acquisition and disposal by the related person and the

person's relationship to the company at those times: N/A

7.Matters related to the creditor's rights currently being disposed

of (including types of collateral of the disposed creditor's rights;

if the creditor's rights are creditor's rights toward a related

person, the name of the related person and the book amount of the

creditor's rights toward such related person currently being

disposed of must also be announced): N/A

8.Anticipated profit or loss from the disposal (not applicable in

cases of acquisition of securities) (where originally deferred, the

status or recognition shall be stated and explained): N/A

9.Terms of delivery or payment (including payment period and

monetary amount), restrictive covenants in the contract, and

other important stipulations: One-time payment in cash

10.The manner in which the current transaction was decided, the

reference basis for the decision on price, and the decision-making

department:

(1) The reference basis for the decision on price: SKL's embedded value per
share shall be used as a reference in determining the price of the issue, with
a written opinion on price reasonableness issued by Holdwell CPAs Firm.

(2) The manner in which the current transaction was decided and the
decision-making department: The Board of Directors

11.Current cumulative volume, amount, and shareholding percentage

of holdings of the security being traded (including the current

trade) and status of any restriction of rights (e.g.pledges):

Number of shares: 470,000,000 shares of preferred shares; 4,983,242,319 shares
of common shares

Amount: NT$4,700,000,000 for preferred shares; NT$49,832,423,190 for common
shares

Shareholding percentage: 74% for preferred shares; 100% for common shares

Restriction of rights: None

12.Current ratio of long or short term securities investment

(including the current trade) to the total assets and shareholder's

equity as shown in the most recent financial statement and the

operating capital as shown in the most recent financial statement:

The calculation of financial ratios takes into consideration the rights issue
of NT$5.3 billion, which will be completed in December, 2009.

Current ratio of long or short term securities investment to total assets:
96%Current ratio of long or short term securities investment to shareholder's
equity: 121%The operating capital in the most recent financial statement:
NT$5,393,347,432

13.Broker and broker's fee: None

14.Concrete purpose or use of the acquisition or disposition: To enhance SKL's
financial structure and capital adequacy.

15.Net worth per share of company underlying securities acquired

or disposed of: NT$8.80

16.Do the directors have any objection to the present transaction?: None

17.Has the CPA issued an opinion on the unreasonableness of the price

of the current transaction?: None

18.Any other matters that need to be specified: None





END

For full details on (SKFHF) SKFHF. (SKFHF) has Short Term PowerRatings at TradingMarkets. Details on (SKFHF) Short Term PowerRatings is available at This Link.