Primus, China Strategic To Pay US$600 Million For Chinatrust Stake - Source
TAIPEI -(Dow Jones)- A consortium formed by Hong Kong's China Strategic Holdings Ltd. (0235.HK) and Primus Financial Holdings Ltd. plans to acquire 9.95% of Chinatrust Financial Holding Co. (2891.TW), which will in turn acquire 30% of Nan Shan Life Insurance Co., which the consortium agreed to buy in October, a person familiar with the matter told Dow Jones Newswires.
The consortium will pay about US$600 million for the fully diluted stake in Taipei-based Chinatrust, which will issue new shares for the transaction, the person said on condition of anonymity.
The arrangement is intended to boost Nan Shan's share of Taiwan's bancassurance market, the person said. Chinatrust is the market leader with a 30% market share. Nan Shan ranks 18th, the person said.
The deal is "the quickest way to get there," the person said, referring to Nan Shan boosting its presence in the sector.
The consortium, which agreed to pay US$2.15 billion for 97.5% of Nan Shan, the Taiwan unit of American International Group Inc. (AIG), in October, expects to close the Nan Shan acquisition before the Lunar New Year holiday in February, the person said.
It then plans to proceed with the acquisition of the Chinatrust stake, and Chinatrust will then buy the Nan Shan stake, the person added.
-By Perris Lee Choon Siong, Dow Jones Newswires; +8862-2502-2557; perris.lee@ dowjones.com
(END) Dow Jones Newswires 11-17-090428ET Copyright (c) 2009 Dow Jones & Company, Inc. |