China Strategic plans to retain long-term Nan Shan control

The Hong Kong-based company, which this week agreed to sell 30 percent of the insurer to Chinatrust Financial Holding Co., plans to keep “direct or indirect” control of Nan Shan, Or said at a press conference in Hong Kong today.

China Strategic is seeking Taiwan's regulatory approval for its purchase of the island's second-biggest insurer after Primus Financial Holdings Ltd. joined it in an agreement last month to buy Nan Shan for US$2.15 billion.

Or reiterated today that the acquisition doesn't involve funds from China. The South China Morning Post reported earlier today that the economics ministry in Taiwan, which doesn't allow Chinese investors to take controlling stakes in its industries, denied its approval.

China Strategic's application was “returned,” not “rejected,” as the regulator required more information on the acquisition plan, Or said. Similar applications usually take about four months to gain approval, he said.

The company will focus on bolstering Nan Shan's business in Taiwan and consider expanding into China and Vietnam, Or said.

China Strategic chose Taipei-based Chinatrust as a partner to invest in Nan Shan because its longer operating history in Taiwan will help alleviate concerns on the island about Nan Shan being managed well, Or said.

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