The government’s regulatory agencies last week lashed out at a Hong Kong consortium’s plan to sell 30 percent of its stake in Nan Shan Life Insurance Co to Chinatrust Financial Holding Co. However, the Nan Shan deal has also put the regulatory agencies’ credibility to the test, with the public watching closely if they will approve the deal eventually.
On Tuesday, Hong Kong-listed China Strategic Holdings Ltd — which, along with private equity fund Primus Financial Holdings Ltd, had purchased a 97.57 percent stake in Nan Shan last month from American International Group Inc (AIG) for approximately US$2.15 billion — announced unexpectedly that it planned to sell 30 percent of the Nan Shan shares to Chinatrust Financial for US$660 million.
In exchange, Chinatrust Financial would sell 9.95 percent of its shares to China Strategic for NT$20.79 billion (US$643 million) via a private placement. Chinatrust Financial said it also reserved the right to increase its shareholding in Nan Shan within three years.
This new deal between China Strategic and Chinatrust Financial has pretty much blown a hole in the commitment the Hong Kong consortium made earlier to the Financial Supervisory Commission, in which it said that, once it wins regulatory approval for its deal with AIG, it would maintain a long-term stake and run the company for a minimum of seven years.
But what has actually raised people’s eyebrows is the identity of the people — or the power — behind the Hong Kong consortium — especially China Strategic.
On Nov. 10, China Strategic, a battery manufacturing and securities investment company, appointed former Hong Kong commerce secretary Frederick Ma (馬時亨) as chairman and former Hang Seng Bank chief executive Raymond Or (柯清輝) as its chief executive officer. Its shareholding structure is also a mystery, raising concern in Taiwan that it might include Chinese nationals. Taiwanese regulations still prohibit Chinese investment in the local financial sector.
Given these concerns, the Investment Commission last Friday demanded that the company submit more documentation about its shareholding structure and the nationalities of shareholders before entering into a formal review of the Nan Shan deal.
The deal has raised a number of questions. Why is China Strategic planning to sell part of its Nan Shan holding to Chinatrust Financial even before it has received regulatory approval to buy AIG’s stake in Nan Shan? Is it simply a tactic to gain regulatory approval by partnering with a major financial conglomerate in Taiwan?
As for AIG, how does it view this deal with the consortium? Has China Strategic broken AIG’s bidding rules by agreeing to sell a stake in Nan Shan to Chinatrust Financial?
When the Hong Kong consortium outbid Chinatrust Financial last month to acquire AIG’s Nan Shan shares, AIG said the winning bidder was chosen because it presented the greatest long-term stability and potential to Nan Shan. Will AIG now agree to the consortium teaming up with Chinatrust Financial after initially rejecting Chinatrust?
This conundrum has raised suspicions whether the government is under pressure to approve the Hong Kong consortium’s deal with AIG, which is nearly 80 percent owned by the US government. The ownership transfer of Nan Shan has great implications for its 4 million policyholders, approximately 4,000 employees and more than 34,000 agents in Taiwan. There is too much at stake for the regulatory agencies to take this issue lightly.
There is a modern roadway stretching from central Hargeisa, the capital of Somaliland in the Horn of Africa, to the partially recognized state’s Egal International Airport. Emblazoned on a gold plaque marking the road’s inauguration in July last year, just below the flags of Somaliland and the Republic of China (ROC), is the road’s official name: “Taiwan Avenue.” The first phase of construction of the upgraded road, with new sidewalks and a modern drainage system to reduce flooding, was 70 percent funded by Taipei, which contributed US$1.85 million. That is a relatively modest sum for the effect on international perception, and
At the end of last year, a diplomatic development with consequences reaching well beyond the regional level emerged. Israeli Prime Minister Benjamin Netanyahu declared Israel’s recognition of Somaliland as a sovereign state, paving the way for political, economic and strategic cooperation with the African nation. The diplomatic breakthrough yields, above all, substantial and tangible benefits for the two countries, enhancing Somaliland’s international posture, with a state prepared to champion its bid for broader legitimacy. With Israel’s support, Somaliland might also benefit from the expertise of Israeli companies in fields such as mineral exploration and water management, as underscored by Israeli Minister of
When former president Tsai Ing-wen (蔡英文) first took office in 2016, she set ambitious goals for remaking the energy mix in Taiwan. At the core of this effort was a significant expansion of the percentage of renewable energy generated to keep pace with growing domestic and global demands to reduce emissions. This effort met with broad bipartisan support as all three major parties placed expanding renewable energy at the center of their energy platforms. However, over the past several years partisanship has become a major headwind in realizing a set of energy goals that all three parties profess to want. Tsai
On Sunday, elite free solo climber Alex Honnold — famous worldwide for scaling sheer rock faces without ropes — climbed Taipei 101, once the world’s tallest building and still the most recognizable symbol of Taiwan’s modern identity. Widespread media coverage not only promoted Taiwan, but also saw the Republic of China (ROC) flag fluttering beside the building, breaking through China’s political constraints on Taiwan. That visual impact did not happen by accident. Credit belongs to Taipei 101 chairwoman Janet Chia (賈永婕), who reportedly took the extra step of replacing surrounding flags with the ROC flag ahead of the climb. Just
RSS