Davis Polk is advising Bank SinoPac on the sale of its U.S. subsidiary, SinoPac Bancorp, to Cathay General Bancorp for $340 million, subject to certain adjustments. Under the terms of the definitive agreement, Cathay has the option to pay up to 10% of the consideration in Cathay common stock. The transaction is expected to close in the first half of 2017, subject to regulatory approvals and other customary closing conditions.
Bank SinoPac (a member of SinoPac Holdings) is a Taiwan-based bank holding company. SinoPac Bancorp is the holding company of Far East National Bank, which is headquartered in Los Angeles. Cathay General Bancorp is the holding company for Cathay Bank, a California state-chartered bank, and is listed on NASDAQ.
The Davis Polk corporate team includes partner James C. Lin and counsel Sam Kelso. Partner John L. Douglas and associate Kelley L. O’Mara are providing financial regulatory advice. Partner Kathleen L. Ferrell and counsel Alon Gurfinkel are providing tax advice. Partner Jean M. McLoughlin and associates Geoffrey E. Walter and Daniel J. Ain are providing executive compensation advice. Members of the Davis Polk team are based in the Hong Kong, Washington DC, New York and London offices.