AIG to sell Taiwanese business $2.16b.

American International Group said yesterday that
it would sell its Taiwan life insurance business,
Nan Shan Life, to a local consortium for $2.16
billion.
Nan Shan Life has 4 million policyholders, making
it an attractive asset in the country ’s crowded
insurance sector. The sale is part of AIG’s broader
efforts to repay bailout funds it received from
taxpayers.
The sale of Nan Shan Life has been plagued by
political and regulatory concerns. In August,
regulators in Taiwan blocked an effort by AIG to
sell the unit for $2.15 billion to an investment
group, including Primus Financial Holding in
Hong Kong and China Strategic Holdings, saying
the bidders did not have the financial strength and
industry experience to run the company.
Other potential suitors soon emerged. In
November, AIG told the Securities and Exchange
Commission it had received unsolicited bids on
the unit ranging from $2.15 billion to $3 billion,
according a letter released by the agency.
Analysts cautioned yesterday that the sale to
Ruen Chen Investment Holding — which is 80
percent owned by the textile and retail
conglomerate Ruentex Group and 20 percent by a
footwear manufacturer — could face hurdles.
AIG, however, expressed confidence that the new
agreement would pass muster.
Also yesterday, AIG said it is moving forward
with its plan to distribute 75 million warrants to
allow current shareholders to buy stock at a
discount.
The company said it is free to issue the warrants
now that the Federal Bank of New York and the
Treasury Department have agreed to allow it to
complete a recapitalization plan.
AIG expects to close the recapitalization
tomorrow, after which it will fully repay the
roughly $25 billion in outstanding aid it owes to
the Federal Reserve Bank of New York.
AIG will distribute the warrants on Jan. 19. Each
warrant entitles the holder to purchase one share
of AIG common stock for $45, a 26 percent
discount to the $61 that the stock was trading at
Jan. 7, when the distribution was announced.


Source: Http://www.boston.com/business/articles/2011/01/13/aig_to_sell_taiwanese_business_216b/