UPDATE: Aegon Seeking To Sell Its Taiwan Operation - Source
February 10 2009 - 5:42AM
Dow Jones News
Dutch life insurance and pension provider Aegon NV (AEG) is
looking for a buyer to purchase its Taiwan operation, a person
familiar with the situation told Dow Jones Newswires on
Tuesday.
The person declined to say how much Aegon plans to sell its
Taiwanese unit for, or identify the potential buyers that have been
contacted. The Economic Daily, a Taiwanese Chinese-language
newspaper, cited unnamed sources as saying that Aegon plans to sell
the unit for NT$4 billion (US$117.8 million).
A disposal of the Taiwanese unit would give Aegon "some capital
relief," said the person, who declined to be named. The unit has
capital of about NT$27.1 billion and owns NT$160 billion worth of
assets.
Global financial service providers are seeking cash because of
the credit crisis, and this is providing opportunities for their
cash-rich Asian rivals to expand.
Taiwan's Fubon Financial Holding Co. paid US$600 million in
October to buy the life insurance unit of ING Groep NV to expand
its share of the life insurance market.
Chinatrust Financial Holding Co. (2891.TW), Taiwan's largest
wealth manager by assets, said Monday it is evaluating acquiring an
insurance company. But a person close to Chinatrust said Tuesday on
condition of anonymity the company has ruled out Aegon's unit as a
suitable acquisition target.
Meanwhile, Taishin Financial Holding Co. (2887.TW) said in a
statement its plan to set up a life-insurance joint venture with
Aegon remains intact for now because the deal was signed with
Aegon, not its unit.
-By Perris Lee Choon Siong, Dow Jones Newswires;
+8862-2502-2557; perris.lee@dowjones.com