AIG Taiwan unit buyers make more concessions-paper

TAIPEI, July 16 (BestGrowthStock) – The buyers of AIG’s (AIG.N: )
Taiwan life insurance unit have offered more concessions to
Taiwanese regulators in their push to break a deadlock that has
stalled the $2.2 billion deal for over eight months.

China Strategic (0235.HK: ) and Primus Financial would not
change the management of the unit, Nan Shan, would put China
Strategic’s planned 70 percent holding into trust and would not
exit Nan Shan for seven years, the Commercial Times reported on
Friday, citing a document submitted to regulators by China
Strategic CEO Raymond Or.

In addition, Or will not take any executive role at Nan Shan,
the paper said.

Or, who is travelling in Europe, did not make any comment
when contacted by Reuters. Primus’ chairman Robert Morse declined
to comment on the report. Taiwan’s regulator, the Financial
Supervisory Commission, said it could not comment because it had
not seen any document.

Diversified battery maker China Strategic and Hong Kong
investment firm Primus agreed to buy Nan Shan in October, but
have been unable to seal the deal amid concerns in Taiwan over
their political connections with mainland China, their lack of
expertise in the insurance business and their ability to raise
funds for the business.

They have expressed their determination to seal the deal, and
have made other concessions including setting aside some of the
purchase price as extra capital, while Or has resigned from his
post on one of China’s top political advisory bodies.

Regulators however have expressed frustration with the
buyers, saying they have not received replies to requests for
information and documentation.

AIG is under pressure to complete the deal after the collapse
of its planned $35.5 billion sale of its Asian life assets to
Britain’s Prudential (PRU.L: ). (For a SCENARIOS on what’s next for
the Nan Shan sale, click [ID:nTOE665029])

Nan Shan has more than 4 million policyholders, nearly
one-sixth of Taiwan’s population.

AIG Taiwan unit buyers make more concessions-paper