Taiwan's state-owned Central Reinsurance Corp. is proposing to sell a 47 percent stake in 2000 to reduce the government's holdings in the company to 40 percent from the current 87 percent, a senior official from the Department of Insurance under the Ministry of Finance told Bridge News. After the sale, Central Reinsurance will be privatized, the official said.
The official said the MOF has agreed with Central Reinsurance's share sale proposal.
Previously, the MOF hoped Central Reinsurance would be privatized by the end of this year, the official said.
"But the share sale plan needs approval from the legislature and the legislative procedure cannot be controlled by the company. So Central Reinsurance proposed the year 2000 privatization plan," the official said.
At present, the government holds an 87 percent stake in Central Reinsurance, while local insurance companies own the remaining 13 percent.
After the share sale plan is realized, the government's holdings will be lowered to 40 percent to achieve the goal of privatization, the official said.
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