Yuanta SITC Minority Shareholders Petition FSC, Questioning Undervaluation of Equity

(Central News Agency, Reporter Zeng Renkai, Taipei, 9th) Yuanta Financial Holding announced in March 2026 that its board had approved a plan to make its subsidiary, Yuanta Securities Investment Trust Co. (Yuanta SITC), a wholly-owned subsidiary. In response, some minority shareholders of Yuanta SITC petitioned the Financial Supervisory Commission (FSC) this morning, questioning the undervaluation of equity in this share conversion plan and requesting regulatory review and the establishment of a minority shareholder protection mechanism for major mergers and acquisitions.

Yuanta Financial Holding responded that the share conversion between Yuanta Financial Holding and Yuanta SITC is being conducted in accordance with the Business Mergers and Acquisitions Act and related regulations, and after board approval, it will be submitted to the shareholders' meeting for discussion as per the law.

In March this year, Yuanta Financial Holding resolved to acquire the outstanding shares of Yuanta SITC by issuing new shares, exchanging 5.2583 shares of Yuanta Financial Holding common stock for each share of Yuanta SITC common stock.

According to sources, when Yuanta Securities merged with Polaris Securities in the past, their respective asset management subsidiaries, Yuanta SITC and Polaris SITC, were also consolidated. As a result, some former Polaris employees came to hold shares in Yuanta SITC. Currently, Yuanta Financial Holding holds approximately 74.71% of Yuanta SITC's shares. This share conversion plan will be submitted to the Yuanta Financial Holding annual general meeting on June 12 for shareholder approval and will be implemented after regulatory approval.

Lawyer Shi Yunting, representing the minority shareholders of Yuanta SITC, stated today that while M&A should be an important tool for corporate development and resource integration, if major acquisitions lack full disclosure, independent valuation, and minority shareholder protection, they can transform from business cooperation into an erosion of rights. She pointed out that when major shareholders hold advantages in information, resources, and procedures, minority shareholders often find it difficult to resist the deliberate undervaluation of equity or ensure their own rights are not sacrificed.

Lawyer Shi noted that this action is not an opposition to all M&A, but rather a protest against unfair M&A that deliberately undervalues equity and disregards the rights of minority shareholders. Major M&A involves the company's future, investor rights, and market trust; it should not be unilaterally driven by those holding majority stakes, nor should minority shareholders be forced to bear risks under unfair conditions. (Editor: Yang Kaixiang) 1150609