Taiwan’s financial regulator said it will make a decision on American International Group Inc’s sale of local unit Nan Shan Life Insurance Co in the first half of this year.
The Financial Supervisory Commission (FSC) had asked Ruen Chen Investment, the group planning to buy Nan Shan Life, to submit all additional paperwork it requested by March 24, FSC Chairman Y.C. Chen said during a parliamentary session.
“We will make a decision on the case by the end of the first half, hopefully sooner” Chen told legislators.
Bailed-out AIG’s second attempt to sell Nan Shan has been stalled for more than a year, with the regulator acutely sensitive to the fate of Nan Shan’s 4 million policyholders, representing a sixth of Taiwan’s population.
Shareholders of the buyer group, comprised of Ruentex Industries Ltd, property affiliate Ruentex Development Co Ltd and shoemaker Pou Chen Corp, approved the $2.16 billion bid last week, paving the way for a full regulatory review.
The FSC had asked the group to provide more details on its fundraising ability and management, and wants it to reduce the level of loans it is taking out, a source told Reuters early in March.
AIG’s first attempt to sell the unit was blocked last year because the buyers were judged not to meet the regulator’s five strict conditions, and some see history repeating itself as the regulator takes aim at how Ruen Chen plans to fund both its bid and Nan Shan’s future operations.
(Reporting by Rachel Lee, writing by Faith Hung; Editing by Chris Lewis)
Topics AIG
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