American International Group Inc accepted a $2.16 billion cash offer for its Taiwan Nan Shan Life unit from a group led by conglomerate Ruentex, though long-running regulatory concerns mean the sale is not assured. AIG sold Nan Shan once before, only to see the deal blocked by Taiwanese regulators concerned about the suitability of the buyer group, which was led by a battery maker. The new deal, with a retailer and a shoe maker, could also run into trouble.
Sources have said Ruentex, a major player in hypermarkets in China and Taiwan, may not meet all of the five criteria the regulator laid down for a buyer. AIG has been trying to sell the unit for some 15 months as part of its plans to help pay back the US government for its $182 billion bailout. Nan Shan is Taiwan's No 3 insurer by market share after the insurance arms of Cathay Financial Holding Co Ltd and Fubon Financial Holding Co Ltd. It has about 4 million policy holders, about one-sixth of Taiwan's people.
The buyer group, called Ruen Chen Investment and comprising Ruentex and shoe maker Pou Chen, signed a deal Wednesday for the 97.57 percent of Nan Shan for sale, Ruentex said in a statement to the Taiwan stock exchange. AIG said it was satisfied the Ruentex bid would meet guidelines set out by the regulator. "Ruen Chen offers strong operational and funding capabilities and possesses a clear ability to satisfy the strict criteria that governed AIG's bid review process," said Robert Benmosche, AIG's chief executive, in a statement.
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