Chillin' out till it needs to be funded
AIG’s NanShan unit is left with a sole bid from Chinatrust for $2.4 billion as other providers including Primus and Carlyle withdrew after Chinatrust raised the bid to $2.4 billion
Chinatrust Financial 2891.TW, Taiwans top credit card issuer, plans to raise T$44.35 billion OR $1.34 billion fresh from the capital markets. This amount may be raised further after the bid acceptance comes through at the higher amount.In a statement late on Friday, Chinatrust said it planned to sell 2.5 billion common shares at T$17.74 per share via a private placement.”The purpose of the fund raising is to strengthen our capital and financial structure… to help operations and business expansion in the long term,” it said.Chinatrust is one of four bidders for Nan Shan, the most expensive of American International Groups assets for sale in Asia.
Earlier China Life was approached by AIG for a stake in the Asian Insurance unit which is in a soup as the value offered by China Life was seen as low and China life did not bid for the unit.