Nan Shan CEO: Ruenchen Deal Has Good Chance Of Regulatory Approval
April 21 2011 - 1:38AM
Dow Jones News
Nan Shan Life Insurance Co., the Taiwan life-insurance unit of
American International Group Inc. (AIG), said Thursday there is "a
good chance" that the island's financial regulator will approve
Ruenchen Investment Holdings Ltd.'s bid to acquire the insurer.
AIG agreed in January to sell Nan Shan for US$2.16 billion to
Ruenchen, a consortium that comprises Ruentex Development Co.
(9945.TW), Ruentex Industries Ltd. (2915.TW) and Pou Chen Corp.
(9904.TW).
The deal, which is subject to regulatory approval, marked the
U.S. insurer's second attempt to offload its Taiwan unit and raise
funds to repay the money it owes the U.S. government following a
bailout during the financial crisis.
"Everything we heard is that there is a good cooperation between
Ruenchen and the regulator," Richard Bender, chief executive of Nan
Shan Life, told reporters on the sidelines of a charity event.
"The deal should be done and approved quickly," Bender said,
adding "I don't think we will go through it for the third time if
the deal falls through again."
In late March, Taiwan's Financial Supervisory Commission set
some additional requirements for the proposed takeover in its
continuing review of the proposed sale. It said Ruenchen should
place NT$30 billion in cash or equivalent assets in a custodian
account to show it has the financial means to run the insurer.
It also asked Ruenchen to place all of its shares in Nan Shan in
a trust for 10 years to ensure its "long-term commitment" to the
insurer, and to appoint a new president of Ruenchen with experience
in the insurance industry to oversee the insurer's operations.
The consortium's relative lack of industry experience raised
concerns at the regulator, which blocked an earlier Nan Shan sale
to a Hong Kong consortium on the grounds it lacked financial
strength and commitment to Nan Shan.
-By Aries Poon, Dow Jones Newswires; 886-2-25022557;
aries.poon@dowjones.com