A Hong Kong consortium bidding for Nan Shan Life Insurance Co (南山人壽) said it would deposit US$325 million, or around 15 percent of the purchase price for the insurer, in an account as a pledge of support for the Taiwanese firm.
In October, China Strategic Holdings Ltd (中策集團) teamed up with Primus Financial Holdings Ltd to acquire a 97.57 percent stake in Nan Shan from its US parent, American International Group Inc (AIG), for US$2.15 billion.
China Strategic said in a Hong Kong Stock Exchange filing yesterday that the consortium had reached an agreement with AIG to set up an escrow account at Citibank Hong Kong, from which it would draw money should Nan Shan experience any shortfall in its risk-based capital (RBC).
That would apply if Nan Shan’s RBC ratio falls below 200 percent, in which case it would be required by Taiwanese regulators to raise its RBC to at least 200 percent, it said.
The Nan Shan deal has been under review by Taiwanese regulators since October over a wide array of concerns about the consortium’s shareholding structure and source of capital, as well as its ability to safeguard Nan Shan employees and policyholders’ interests.
The establishment of an escrow account for RBC funding of Nan Shan came after China Strategic CEO Raymond Or (柯清輝) reportedly resigned his membership from an advisory body to the Chinese Communist Party (CCP) earlier this month amid Taiwan’s concerns about his political affiliation, hoping to speed up the consortium’s acquisition of the insurer.
NOT JUSTIFIED: The bank’s governor said there would only be a rate cut if inflation falls below 1.5% and economic conditions deteriorate, which have not been detected The central bank yesterday kept its key interest rates unchanged for a fifth consecutive quarter, aligning with market expectations, while slightly lowering its inflation outlook amid signs of cooling price pressures. The move came after the US Federal Reserve held rates steady overnight, despite pressure from US President Donald Trump to cut borrowing costs. Central bank board members unanimously voted to maintain the discount rate at 2 percent, the secured loan rate at 2.375 percent and the overnight lending rate at 4.25 percent. “We consider the policy decision appropriate, although it suggests tightening leaning after factoring in slackening inflation and stable GDP growth,”
DIVIDED VIEWS: Although the Fed agreed on holding rates steady, some officials see no rate cuts for this year, while 10 policymakers foresee two or more cuts There are a lot of unknowns about the outlook for the economy and interest rates, but US Federal Reserve Chair Jerome Powell signaled at least one thing seems certain: Higher prices are coming. Fed policymakers voted unanimously to hold interest rates steady at a range of 4.25 percent to 4.50 percent for a fourth straight meeting on Wednesday, as they await clarity on whether tariffs would leave a one-time or more lasting mark on inflation. Powell said it is still unclear how much of the bill would fall on the shoulders of consumers, but he expects to learn more about tariffs
Greek tourism student Katerina quit within a month of starting work at a five-star hotel in Halkidiki, one of the country’s top destinations, because she said conditions were so dire. Beyond the bad pay, the 22-year-old said that her working and living conditions were “miserable and unacceptable.” Millions holiday in Greece every year, but its vital tourism industry is finding it harder and harder to recruit Greeks to look after them. “I was asked to work in any department of the hotel where there was a need, from service to cleaning,” said Katerina, a tourism and marketing student, who would
i Gasoline and diesel prices at fuel stations are this week to rise NT$0.1 per liter, as tensions in the Middle East pushed crude oil prices higher last week, CPC Corp, Taiwan (台灣中油) and Formosa Petrochemical Corp (台塑石化) said yesterday. International crude oil prices last week rose for the third consecutive week due to an escalating conflict between Israel and Iran, as the market is concerned that the situation in the Middle East might affect crude oil supply, CPC and Formosa said in separate statements. Front-month Brent crude oil futures — the international oil benchmark — rose 3.75 percent to settle at US$77.01
RSS