China Strategic: may seek AIG Taiwan deal extension

HONG KONG/TAIPEI, June 14 (BestGrowthStock) – China Strategic
(0235.HK: ), one of the buyers of AIG’s (AIG.N: ) Taiwan unit, could
talk about extending the stalled $2.2 billion deal if needed, but
hopes for a conclusion soon, its chief executive said on Monday.

“If necessary, we will talk to AIG to extend the deadline,”
China Strategic’s Raymond Or told Reuters. But it is still early
now. From the management point of view we will try our best (to
close the deal).”

Bailed-out U.S. insurer American International Group agreed
to sell the unit, Nan Shan Life, to China Strategic and Hong
Kong-based Primus Financial in October.

But it has not been able to seal the deal in part because
there are concerns in Taiwan the buyers are backed by Chinese
funds and lack experience an insurance firm.

China Strategic, a battery maker, and Primus have yet to
provide all documents requested by the Taiwan government, said
two Taiwan regulatory sources with direct knowledge of the
situation.

“Since November, they still have not been able to provide all
the requested documents. That leaves us in a position where we
just don’t know when the government can make a decision on the
deal,” said one of sources.

The sources declined to be identified due to the sensitivity
of the matter.

When asked about the documentation, Or said: “We had
submitted the information they required and they later came back
with more questions that need to be addressed. So we can’t
control the timing on when can we draw to a conclusion.”

AIG and China Strategic said late on Friday they have
modified the terms of the deal to speed up its passage by
Taiwanese regulators.

AIG said $325 million of the purchase price would now be
placed in escrow for four years on completion of the deal as an
additional measure of support for the capital position of Nan
Shan. [ID:nLDE65A1E9]

Stock Trading

(Reporting by Alison Leung in Hong Kong and Faith Hung in
Taipei; Editing by Jonathan Standing)

China Strategic: may seek AIG Taiwan deal extension