Private equity firms eye AIG's Taiwan life insurance arm

JC Flowers & Co and Kohlberg Kravis Roberts & Co are both expected to bid for Nan Shan Life, as are Taiwanese financial services groups Fubon Financial and Cathay Financial, sources told Reuters.

The official auction for Nan Shan reportedly began within the last week, and AIG is said to want between $1.8bn and $2bn for the company.

According to Reuters, AIG put a number of Asian units, including Nan Shan, up for sale earlier this year, but the sales were suspended while the firm and the US government agreed on new aid terms.

Potential bidders said they had been put off participating in the previous auction because of the high asking price, which was rumoured to be from $2bn to $2.5bn.

KKR has secured a number of deals across Asia this year, including  investments in Chinese dairy company Modern Dairy, and a takeover of Korea’s Oriental Brewery.

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