Taiwanese finance companies bid for AIG's Nan Shan

Chinatrust Financial, Cathay Financial, Ruentex Group and Fubon Financial to bid for AIG's 97.57% stake in Nan Shan.

American International Group Inc. has attracted four Taiwanese financial and business conglomerates for a new round of acquisition bids for its life insurance unit, Nan Shan Life Insurance Co. Ltd., in Taiwan.

The four companies expressing interest in Nan Shan are Chinatrust Financial Holding Co., Cathay Financial Holding Co., Ruentex Group and Fubon Financial Holding Co. Ltd.

Chinatrust Financial said in a statement "the board of directors decided to take part in the bidding for the sale of AIG's 97.57% stake in Nan Shan." The publicly listed financial conglomerate with businesses in banking, credit cards, securities, asset management and insurance brokerage had lost in a previous round of bidding for Nan Shan in October 2009.

Recently, Chinatrust Financial said it plans to raise about NT$60.3 billion (US$1.98 billion) through a new share issue to enhance its capital structure and expand in the nonbanking financial sector (BestWire, Dec. 1, 2010).
Cathay Financial, the holding company of Cathay Life Insurance Co. Ltd., also said it is participating in the bidding for Nan Shan.

A consortium led by business conglomerate Ruentex Group said they have joined the bidding, according to its publicly listed unit Ruentex Development Co. Ltd. unit.

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