Bain Capital LLC, Morgan Stanley’s private equity unit, and Oaktree Capital Management LLC plan to bid together with Chinatrust Financial Holding Co (中信金控) for American International Group Inc’s (AIG) Taiwan unit, three people with knowledge of the matter said.
The companies would bid against Carlyle Group, which is partnering with Fubon Financial Holding Co (富邦金控) for the next round of offers scheduled for late next month, the people said, asking not to be identified because the talks are confidential.
AIG hired Morgan Stanley and Blackstone Group LP to manage the sale.
AIG’s advisers last week asked buyout firms to team up with Fubon or Chinatrust to ease regulatory concerns about the sale of the nation’s second-biggest insurer, Nan Shan Life Insurance Co (南山人壽), to private-equity firms.
AIG owns 97.57 percent of the unit and Nan Shan’s management holds the rest. Nan Shan may fetch about US$2 billion in the sale, the people said earlier.
The company has 4 million policyholders and an 11 percent market share in terms of premiums.
Primus Financial Holdings Ltd and Cathay Financial Holding Co (國泰金控) have also been invited to put in binding bids next month, the people said.
“The regulator wants the domestic companies to be in the driving seat,” said Chuang Piyen, a Taipei-based analyst at Mega Securities Co (兆豐證券). “The buyout firms are likely to be passive investors contributing capital to help the local partner bid.”
Morgan Stanley, which owns 4.8 percent of Chinatrust, won approval last month to boost the stake to 9.9 percent through its Asia private-equity unit. The unit teaming up with Chinatrust’s investing group may conflict with Morgan Stanley’s role as AIG’s sale adviser, according two rival bidders who asked not to be identified.
Primus Financial hired The Boston Consulting Group to work on a strategic business plan for Nan Shan and plans to allocate at least 5 percent to 10 percent of the company’s shares to the management and staff should it acquire the Taiwan insurer, a bid document obtained by Bloomberg News showed.
The financial services company, which has raised more than US$1 billion this year, also plans to expand Nan Shan’s scope of services to Hong Kong and China, the letter said.
The setup of groups bidding for Nan Shan may change, the people said.
The Financial Supervisory Commission has said it wants a buyer of Nan Shan to have experience in insurance.
NOTABLE SHIFT: By 2030, 50% of all laptops would be assembled in Southeast Asia, while Taiwan would still mostly focus on research and development, a report said Global laptop and desktop computer supply chains are expected to shift significantly away from China in the next 10 years, a Market Intelligence & Consulting Institute (MIC, 產業情報研究所) report said. By 2030, only 40 percent of global laptop production would remain in China, said the report, which was released on Thursday. “The reshuffling of the global supply chain will be one of the most important trends in the next 10 years,” the institute said in the report. “In the long run, key component makers will follow laptop assemblers in moving out of China.” The Taipei-based institute predicted most key component makers
Merck Group Taiwan yesterday said that it plans to invest substantially on expanding its fab in Kaohsiung’s Lujhu District (路竹) to better serve its local customers, including Taiwan Semiconductor Manufacturing Co (TSMC, 台積電). The company said it plans to expand its production space by 50 percent in the next five years and its workforce by about 40 percent, Merck Group Taiwan managing director Dick Hsieh (謝志宏) told a media briefing in Taipei. Hsieh declined to disclose investment details, but said that the latest investment would exceed the total amount Merck has invested in Taiwan over the past few years. Those investments would be
Yageo Corp (國巨), the world’s third-largest supplier of multilayer ceramic capacitors, has formed a strategic alliance with Hon Hai Precision Industry Co (鴻海精密) to develop key electronic components for electric vehicles and digital healthcare, it said yesterday. The alliance is to help Yageo boost its revenue from high-end components for vehicles and industrial, medical and aerospace devices, as well as those used in 5G and Internet-of-Things devices, the company said. The companies signed the strategic alliance agreement at Yageo’s headquarters in New Taipei City’s Sindian District (新店). Their cooperation is to start this quarter, the companies said in a joint statement. “Through the cooperation
INVEST IN TAIWAN: A metal components casting firm and the world’s largest maker of aluminum bicycle rims also obtained approvals to join the program Solar Applied Materials Technology Co (SOLAR, 光洋應用材料), a part of Taiwan Semiconductor Manufacturing Co’s (TSMC, 台積電) “green supply chain,” has pledged to invest NT$1 billion (US$34.1 million) to build a new plant at the Tainan Technology Industrial Park (台南科技工業區), the Ministry of Economic Affairs said yesterday. SOLAR has been collaborating with TSMC to extract precious metals from waste and reuse them as “sputtering target” material in high-end semiconductor manufacturing, a TSMC press release issued in May said. Established in 1978, SOLAR also offers key materials and integrated services to customers in the optoelectronics, information and communications technology, petrochemicals and consumer electronics industries,