CTBC Financial Holding, the Taiwan-based financial services group and parent company of Chinatrust Commercial Bank, has agreed to buy a 98.16 per cent stake in Tokyo Star Bank for ¥52 billion ($529 million) of cash considerations in a deal that is expected to be net profit accretive to CTBC Bank. 

The acquisition is intended to help the firm become more competitive and further expand in the North East Asia region. It will also allow the bank to acquire more bases of operations and clients overseas. Tokyo Star Bank was established in 2001 after Lone Star Funds took over when its predecessor Tokyo Showa Bank went bankrupt. 

The deal, to be filed with regulators in Taiwan and Japan, will close upon receipt of both shareholder and regulatory approvals.