Taiwan Regulator Says Nan Shan Application Omitted Specifics
TAIPEI -(Dow Jones)- Taiwan's Investment Commission said Thursday it turned
down an application by the China Strategic Holdings Ltd.-led (0235.HK)
consortium to acquire Nan Shan Life Insurance Co. because it didn't provide
specifics on the consortium's funding sources or investors.
American International Group Inc. (AIG) agreed last month to sell its Taiwan
insurance unit, Nan Shan Life, to the consortium, comprising Hong Kong-based
China Strategic Holdings and Primus Financial Holdings Ltd., for US$2.15
billion.
But the commission turned down the consortium's application on Nov. 13, a day
after it was submitted, and asked for more information about the deal, including
a statement from AIG about its intention to sell Nan Shan Life, the commission
said in a report to lawmakers.
It also said China Strategic must explain its agreement with Chinatrust
Financial Holding Co. (2891.TW) to sell a 30% stake in Nan Shan Life to the
consumer-banking giant in exchange for a 9.95% stake in Chinatrust. China
Strategic announced that deal only this month, weeks after winning the bid for
Nan Shan Life.
"I do think they need to be more consistent," Financial Supervisory Commission
Chairman Sean Chen told lawmakers in reference to the China Strategic-Chinatrust
agreement, which critics say runs contrary to the consortium's long-term
commitment to Nan Shan Life's interests.
Another concern in Taiwan is whether the consortium is backed by Chinese
money. Taiwan still doesn't allow mainland Chinese investment in the island's
financial institutions. Taiwan law treats foreign companies as Chinese-owned if
Chinese investors have at least a 30% stake in them.
Chen said the FSC has also asked Hong Kong's securities regulator to provide
information about China Strategic and Primus's shareholders.
-By Jessie Ho and Perris Lee Choon Siong, Dow Jones Newswires; +8862-2502-
2557; perris.lee@dowjones.com, jessie.ho@dowjones.com
(END) Dow Jones Newswires
11-26-090023ET
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