INVESTOR GROUPS MANEUVER TO ACQUIRE AIG’S TAIWANESE LIFE INSURER & DEVELOP BANCASSURANCE BUSINESS

Hong Kong-based China Strategic Holdings (China Strategic) has agreed to sell a 30% stake in Hong Kong-based Nan Shan Life Insurance to Taipei, Taiwan-based Chinatrust Financial Holding Company (Chinatrust) for NT$21.2 billion ($656.9 million), and Chinatrust has agreed to sell a 9.95% stake in itself through a private placement to China Strategic. After three years, the companies agreed that Chinatrust may increase its stake in Nan Shan, and China Strategic may increase its stake in Chinatrust. Chinatrust said it agreed to the deals “for the development of the bancassurance business.” These deals and the deal to sell AIG subsidiary Nan Shan Life Insurance Co. to the Hong Kong-based consortium led by Primus Financial Holdings and China Strategic (consortium) are now on hold. Taiwan’s Ministry of Economic Affairs Investment Commission said the consortium must submit more documents, and Taiwan’s Financial Supervisory Commission said Nan Shan’s buyers must show consistency related to long-term commitments to the Taiwanese market, BestWire reports