AIG to exit Taiwan credit card business; puts Nan Shan on block
01 July 2009
As part of its plan to repay the Federal bailout funds, American International Group Inc. (AIG) is planning to sell its Taiwan credit card business, AIG Credit Card Co. (Taiwan) Ltd, to Far Eastern International Bank, the company said yesterday.
Te company has not disclosed the terms of the deal, which is expected to be completed in the third quarter.
However, according to media, the deal is expected to fetch around 2.3 billion to 3 billion new Taiwan dollars ($70 million to $92 million).
Meanwhile, the troubled financial giant is also placing on auction its Taiwanese life insurance unit Nan Shan Life Insurance Co.
Several private equity firms, including the Carlyle Group, Kohlberg Kravis Roberts & Co., Primus Financial Holdings Ltd., Cathay Financial Holding Co., Chinatrust Financial Holding Co., Fubon Financial Holding Co., Shin Kong Financial Holding Co., Mega Financial Holding Co., Affinity Equity Partners Ltd., and MBK Partners Ltd. are expected to take part in the auction on 03 July.
The unit is expected to bring in $2 billion.