Regulators block Nan Shan sale to China Strategic and Primus tandem

AIG said that it would meet with Nan Shan's board of directors and senior management to reassess their strategy. The US insurer further announced that it is "disappointed by the Investment Commission's decision" as it had complied with regulators to facilitate a workable transaction. The consortium first launched its multi-billion dollar bid 10 months ago, setting off a process that was stalled due to a myriad of concerns ranging from the consortium's inexperience in the insurance arena to the firms' political ties with China.

"AIG has collaborated with the Taiwanese regulatory authorities from the outset of the sale process, and, in addition to meeting the criteria determined by the Investment Commission and other regulators, AIG believes that its additional accommodations of regulatory requests, including a seven-year lockup mechanism agreed to by the Primus Nan Shan consortium and a $325mm escrow agreement agreed to by AIG, demonstrate clear support for the Nan Shan capital structure and incontrovertible commitment to the long-term health and prosperity of Nan Shan," AIG publicly said.

Regulators last month announced they were in their final stage of the review, and while they said further bidders would not be considered in the process, domestic bank Chinatrust Holdings and former Taiwanese diplomat Wang Shih-jung, backed by Japanese and Qatari financers, said they would vie for the asset if the Chinese consortium failed. Nan Shan insures approximately one-sixth of Taiwan's population.

 

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• Topics
• Greater China
• Buyouts
• Primus Pacific Partners