UPDATE:Taiwan Regulator Demands More Papers For Nan Shan Deal
(Adds comments from China Strategic and AIG.)
By Jessie Ho
Of DOW JONES NEWSWIRES
TAIPEI -(Dow Jones)- Taiwan's governmentturned down an application by a
consortium led by China Strategic Holdings Ltd. (0235.HK) to buy Nan Shan Life
Insurance Co., American International Group Inc. (AIG)'s Taiwanese unit, asking
for more documents.
"We rejected the (first) application last week because some needed papers are
missing," Emile Chang, deputy executive secretary of Taiwan's Investment
Commission, said Thursday.
In AIG's biggest sale since it started raising funds to repay billions of
dollars in U.S. bailout money, China Strategic Holdings and Primus agreed in
October to pay US$2.15 billion for Nan Shan Life.
But the deal has met with regulatory hurdles as the winning consortium doesn't
have a local partner while Taiwanese lawmakers are concerned Chinese interests
may also be involved. In a move to facilitate regulatory approval, China
Strategic said Tuesday it plans to sell a 30% stake in Nan Shan to local
financial conglomerate Chinatrust Financial Holding Co. (2891.TW), in exchange
for a 9.95% stake in the Taiwan financial conglomerate.
Chang said more documents are needed after this deal.
As the seller, AIG also needs to jointly file the application, he said. The
application was filed by Primus Nan Shan Holding, a company set up by Primus
Financial Holdings Ltd. and China Strategic.
A spokesperson for AIG said the company understands the regulatory authorities
asked for more information before they would formally accept the completed
application.
"We also understand that this is a routine request, and look forward to
continuing to work with the regulators toward a successful close of the
transaction," the spokesperson said.
China Strategic said Thursday the deal remains subject to further
negotiations, adding the company intends to take control of Nan Shan, "either
directly or indirectly." It didn't elaborate.
After collecting all the papers, the commission will submit the application to
the legislature for approval as lawmakers will need to check if there's Chinese
investment in China Strategic, Chang said.
Taiwan's laws prohibit Chinese companies and individuals from holding
controlling stakes in Taiwanese companies in most industries, including
insurance.
-By Jessie Ho and Jeffrey Ng, Dow Jones Newswires; 88622 502-2557; jessie.ho@
dowjones.com
(END) Dow Jones Newswires
11-19-090351ET
Copyright (c) 2009 Dow Jones & Company, Inc.
|