Taiwan aims to make a decision by the end of June on the controversial sale of the local unit of American International Group (AIG) to a Hong Kong consortium, a top economic official said Thursday.
Deputy economic minister Hwang Jung-chiou also told a parliamentary briefing that an initial review showed the bid for Nan Shan Life Insurance was not backed by Chinese capital, as feared by many on the island. “The documents showed there was no Chinese investor involved… The Investment Commission would have rejected it if there were,” he said, adding the ministry will further examine the source of its funding.
Hong Kong-based China Strategic Holdings and Primus Financial Holdings acquired Nan Shan Life from AIG for 2.15 billion dollars in October, pending approval from Taiwan authorities. But the deal has been in limbo since November when China Strategic announced a plan to sell a 30 percent stake in Nan Shan to Taipei-based Chinatrust Financial Holding Co.
Rumours also surfaced late last year that Chinese capital was involved in the deal, claims that the consortium has repeatedly denied. Taiwan has partially lifted a decade-old ban on Chinese investment amid improving ties after President Ma Ying-jeou took office in 2008 on a China-friendly platform. However, the government still imposes various restrictions in key sectors such as finance, flat-panel technology and telecommunications as it seeks to keep control of its economy.
Taipei, March 11, 2010 (AFP)
