萬國法律事務所

The proposed takeover of Nanshan Life Insurance Co. Ltd. (Nanshan Life) by the investment conglomerate comprised of Hong Kong-based Primus Financial Holdings Ltd. and China Strategic Holdings Ltd. is expected to be vetoed by the board of Nanshan Life at its meeting scheduled on September 28, 2010 as the Financial Supervisory Commission (FSC) had previously not granted approval of the sale of Nanshan Life to the conglomerate due to its financial instability.

Nanshan Life is 97.57 percent owned by the American International Group (AIG) and after the breakdown of the deal with the investment conglomerate, AIG will once again open the bid for the sale of its stake in Nanshan Life. Those interested in acquiring Nanshan Life have already engaged financial consulting firms to evaluate and determine a reasonable price for the bid.

Reports in the media on September 8, 2010 indicated that interested bidders include the alliance of Carlyle Group and Ruentex Financial Group Chairman Samuel Yin, Chinatrust Financial Holding Co. Ltd., Fubon Financial Holding Co. Ltd., Taishin Financial Holding Co. Ltd., Shin Kong Financial Holding Co. Ltd., Cathay Financial Holdings, Bao Peng Nan Shan Investment Holdings Co. in collaboration with Qatar sovereign wealth fund, and the previously FSC-nonapproved investment conglomerate of Primus Financial Holdings Ltd. and China Strategic Holdings Ltd.

Among the potential bidders, it is understood that the alliance of Carlyle Group and Ruentex Financial Group Chairman Samuel Yin has expressed the most interest and determination in acquiring Nanshan Life and has offering a takeover bid of approximately US$ 13M~14M. The takeover battle may continue to heat up as Nanshan Life announces the failure to reach a deal with the investment conglomerate of Primus Financial Holdings Ltd. and China Strategic Holdings Ltd.