The US fund will invest $657 million in the bank paying $0.51 for each share in a deal which represents the firm’s first investment in a Taiwanese bank.
Carlyle overcame strong opposition from rival fund MBK Partners to secure the stake, which will see it become the bank's single largest shareholder, according to an interview with Ta Chong spokesman James Chiou cited by Reuters.
News of the deal follows Citigroup and Standard Chartered investing in Taiwanese lenders, while more recently investment fund Longreach Group bought a controlling stake in EnTie Bank for $568 million.
Meanwhile, the acquisition for Carlyle marks a period of sustained investment for the private equity giant. Yesterday, it acquired auto-accessories manufacturer Sequa for $2.7 billion, and last month it bought Home Depot’s supply arm for $10.3 billion along with two private equity partners.