CDF, on behalf of KGI Bank announced the acquisition of real estate assets from CDIB Capital Group (hereinafter referred as “CDIB”).

2021-09-27
Announcements

Date of announcement  2021/09/27 
Time of announcement  19:33:24
Date of events   2021/09/27 
To which item it meets paragraph 20

Statement 
1.Name and nature of the underlying asset (e.g., land located at Sublot XX,
Lot XX, North District, Taichung City):The office located at
“8F., No.19-3, Sanchong Rd., Nangang Dist., Taipei City” and 9
parking spaces (including with the share of possession of No.19-14,
Sanchong Rd., Nangang Dist. Taipei City”) (hereinafter referred as
“Nangang Building”).
2.Date of occurrence of the event:2021/09/27
3.Transaction unit amount (e.g.XX square meters, equivalent to XX ping),
unit price, and total transaction price:
Land area:571.14 square meters (equivalent to 172.77 pings)
Building area:2,719.27square meters(equivalent to 822.58 pings)
Total transaction amount: NT$ 410,000,000.
4.Trading counterparty and its relationship with the Company (if the trading
counterparty is a natural person and furthermore is not a related party of
the Company, the name of the trading counterparty is not required to be
disclosed):The trading counterpart is CDIB, a related party of the bank.
5.Where the trading counterparty is a related party, announcement shall also
be made of the reason for choosing the related party as trading counterparty
and the identity of the previous owner, its relationship with the Company
and the trading counterparty, and the previous date and monetary amount of
transfer:
(1)the reason for choosing the related party as trading counterpart:
It meets the needs of the bank's operating needs, can provide a larger
floor area, which can achieve the purpose of group operation efficiency
and resource integration.
(2)the identity of the previous owner:
Industry Development Bureau, Ministry of Economic Affairs.
(3)the previous owner’s relationship with the company and
the trading counterpart:The previous owner and this trading
counterpart are not the related parties, and the previous owner
and KGI Bank are not the related parties. But this trading counterpart
and KGI Bank are the related parties.
(4)The date of acquisition: 1999/11/19.
(5)The price of transfer:NT$180,325,207, the unit price of lands and
buildings is per ping NT$255,179.74, and the unit price of
parking space is NT$1,751,400.
6.Where an owner of the underlying assets within the past five years has
been a related party of the Company, the announcement shall also include the
date and price of acquisition and disposal by the related party, and its
relationship with the Company at the time of the transaction:Not applicable.
7.Projected gain (or loss) through disposal (not applicable for
acquisition of assets; those with deferral should provide a table
explaining recognition):Not applicable
8.Terms of delivery or payment (including payment period and
monetary amount), restrictive covenants in the contract,
and other important terms and conditions:
Terms of payment: The first installment is 10% of
the transaction price. The second installment is 90%
of the transaction price.
Terms of restrictive covenants in the contract,
and other important stipulations:
CDIB will lease back the area of 13.88 pings used as
CDIB’s IDC room on Nangang Building transfer completion date,
and CDIB will sign lease agreement with KGI Bank.
The lease of the area used as CDF’s IDC room shall be
undertaken by KGI Bank on Nangang Building transfer completion
date, which including the initial lease contract, rental
deposit and pre-collected rental payment will be
transferred accordingly.
The lease contract signed on March 31, 2020, between KGI Bank
and CDIB shall be terminated on Nangang Building transfer completion date.
9.The manner of deciding on this transaction (such as invitation to tender,
price comparison, or price negotiation), the reference basis for the
decision on price, and the decision-making unit:
The manner of deciding on this transaction: Negotiation.
The transaction price is decided based on the professional
real estate appraisal report and authorized by Board of Directors.
10.Name of the professional appraisal firm or company and
its appraisal price:
Institution name: REPro International Appraisals.
Appraisal amount: The real estate appraisal price is NT$419,000,000.
11.Name of the professional appraiser:WU,HONG-HSU
12.Practice certificate number of the professional appraiser:
Cushman & Wakefield Real Estate Appraiser Office: (94)TCG NO. 000065.
13.The appraisal report has a limited price, specific price,
or special price:NO
14.An appraisal report has not yet been obtained:NO
15.Reason for an appraisal report not being obtained:Not applicable.
16.Reason for any significant discrepancy with the appraisal reports
and opinion of the CPA:Not applicable.
17.Name of the CPA firm:Not applicable.
18.Name of the CPA:Not applicable.
19.Practice certificate number of the CPA:Not applicable.
20.Broker and broker's fee:Not applicable.
21.Concrete purpose or use of the acquisition or disposal:
Cooperate with the overall planning of the bank and the group
to achieve the purpose of group operation efficiency and
resource integration and the necessity for commercial
banks to use this computer room.
22.Any dissenting opinions of directors to the present transaction:
None
23.Whether the counterparty of the current transaction is a
related party:Yes
24.Date of the board of directors resolution:2021/09/27
25.Date of ratification by supervisors or approval by
the audit committee:2021/09/27
26.The transaction is to acquire a real property or right-of-use
asset from a related party:Yes
27.The price assessed in accordance with the Article 16 of the
Regulations Governing the Acquisition and Disposal of Assets
by Public Companies:Not applicable
28.Where the above assessed price is lower than the transaction price,
the price assessed in accordance with the Article 17 of the same
regulations:Not applicable
29.Any other matters that need to be specified:No

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