Adding drama to the ongoing bid for Nan Shan Life Insurance Co (南山人壽), a consortium of Goldsun Development & Construction Co (國產實業), Taiwan Secom Co (中興保全) and Hong Kong’s Primus Financial Holding Co (博智金融) has offered joint governance with Nan Shan’s US parent, American International Group Inc (AIG).
The offer marks the latest attempt by a potential buyer to secure AIG’s 97.57 percent stake in Nan Shan, as the US firm has yet to select a bidder after putting its Taiwanese unit back on the market.
“By offering to jointly run Nan Shan, we hope to find a solution acceptable to AIG and the Financial Supervisory Commission,” Taiwan Secom spokesman Max Chu (朱漢光) said by telephone.
The commission has repeatedly called on AIG to retain Nan Shan and has promised to provide the necessary measures to stabilize the industry and protect the rights of Nan Shan employees and policyholders.
The consortium, which is set to establish a holding company in the next few days for the purpose of the acquisition, has pledged to employ all Nan Shan executives and staffers and keep their salary and benefits intact for at least two years, Chu said.
While willing to share governance, Goldsun, a cement maker, and Taiwan Secom, a home security supplier, would like to have a majority stake in Nan Shan, Chu said. Both Goldsun and Taiwan Secom are controlled by Lin Shiaw-shin (林孝信) and his family.
“Taiwan Secom has long planned to own an insurance unit,” Chu said. “By offering to join forces with AIG, the consortium should be able to pass the professional competence requirement.”
The commission has required Nan Shan buyers to demonstrate a long-term commitment, the capability to increase capital and competence in professional management.
“The consortium intends to trade Nan Shan shares on the local bourse to meet recapitalization needs in the future,” Chu said.
The consortium will also agree to return all statutory reserves as required by the Nan Shan’s union, Chu said.
AIG has yet to respond to the co-governance proposal, Chu said, adding that Primus is negotiating the matter on the consortium’s behalf.
The financial regulator declined to comment except to reiterate the five review principles under which the buyer must also obey funding rules, especially if Chinese capital is involved.
Wu Chung-chuang (吳崇權), deputy director-general of the commission’s insurance bureau, said the financial regulator has not heard from AIG since a visit before Christmas.
“We cannot say anything before AIG files new share transfer applications,” Wu told an evening media briefing.
The consortium is vying for Nan Shan with four other contenders: Cathay Financial Holding Co (國泰金控), Fubon Financial Holding Co (富邦金控), Chinatrust Financial Holding Co (中信金控) and a consortium comprised of Ruentex Group (潤泰集團) and footwear maker Pou Chen Corp (寶成工業).
FALLING BEHIND: Samsung shares have declined more than 20 percent this year, as the world’s largest chipmaker struggles in key markets and plays catch-up to rival SK Hynix Samsung Electronics Co is laying off workers in Southeast Asia, Australia and New Zealand as part of a plan to reduce its global headcount by thousands of jobs, sources familiar with the situation said. The layoffs could affect about 10 percent of its workforces in those markets, although the numbers for each subsidiary might vary, said one of the sources, who asked not to be named because the matter is private. Job cuts are planned for other overseas subsidiaries and could reach 10 percent in certain markets, the source said. The South Korean company has about 147,000 in staff overseas, more than half
Taipei is today suspending its US$2.5 trillion stock market as Super Typhoon Krathon approaches Taiwan with strong winds and heavy rain. The nation is not conducting securities, currency or fixed-income trading, statements from its stock and currency exchanges said. Yesterday, schools and offices were closed in several cities and counties in southern and eastern Taiwan, including in the key industrial port city of Kaohsiung. Taiwan, which started canceling flights, ship sailings and some train services earlier this week, has wind and rain advisories in place for much of the island. It regularly experiences typhoons, and in July shut offices and schools as
An Indian factory producing iPhone components resumed work yesterday after a fire that halted production — the third blaze to disrupt Apple Inc’s local supply chain since the start of last year. Local industrial behemoth Tata Group’s plant in Tamil Nadu, which was shut down by the unexplained fire on Saturday, is a key linchpin of Apple’s nascent supply chain in the country. A spokesperson for subsidiary Tata Electronics Pvt yesterday said that the company would restart work in “many areas of the facility today.” “We’ve been working diligently since Saturday to support our team and to identify the cause of the fire,”
TECH PARTNERSHIP: The deal with Arizona-based Amkor would provide TSMC with advanced packing and test capacities, a requirement to serve US customers Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) is collaborating with Amkor Technology Inc to provide local advanced packaging and test capacities in Arizona to address customer requirements for geographical flexibility in chip manufacturing. As part of the agreement, TSMC, the world’s biggest contract chipmaker, would contract turnkey advanced packaging and test services from Amkor at their planned facility in Peoria, Arizona, a joint statement released yesterday said. TSMC would leverage these services to support its customers, particularly those using TSMC’s advanced wafer fabrication facilities in Phoenix, Arizona, it said. The companies would jointly define the specific packaging technologies, such as TSMC’s Integrated
RSS