* Chinatrust earlier lost bid to acquire unit * Now buying 30 pct stake in unit from China Strategic * China Strategic to take 9.95 pct stake of Chinatrust * China Strategic to buy Chinatrust shrs at 13 pct discount (Adds comments, details) By Faith Hung TAIPEI, Nov 17 (Reuters) – Chinatrust Financial ( 2891.TW ), which lost a bid to acquire AIG’s ( AIG.N ) Taiwan life insurance unit, said on Tuesday it agreed to buy a 30 percent stake of it for $660 million from China Strategic ( 0235.HK ). In exchange, China Strategic would take a 9.95 percent Chinatrust stake, worth about T$20.8 billion ($648 million), via a private placement, Chinatrust said in a statement. The acquisition comes after Chinatrust, the island’s biggest credit card issuer, said earlier this month that it did not rule out taking legal action against the U.S. insurance giant. Chinatrust said then its bid for the Nan Shan Life unit was higher than the $2.15 billion joint bid by China Strategic and Primus Financial. [ID:nTP133123] Nan Shan is Taiwan’s No. 3 life insurer by market share. “Chinatrust has Taiwan’s biggest bank insurance distribution network,” Chinatrust said. “The combination will create the most synergy for Chinatrust and Nan Shan.” China Strategic would buy the shares of Chinatrust at T$17.74 each, the statement said, representing a 13 percent discount from Tuesday’s closing price. Both sides have signed a memorandum of understanding on Tuesday, it said. The Nan Shan sale marked the largest disposal since the U.S. government bailed out AIG, which saved the insurer from collapse last year. Before the announcement, Chinatrust stocks closed 3.3 percent lower at T$20.35, trailing the broader market’s 0.76 percent slide. (Reporting by Faith Hung; Editing by Jon Loades-Carter) ($1=T$32.1) Visit link: UPDATE 1-Chinatrust agrees to buy stake of AIG’s Taiwan unit
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UPDATE 1-Chinatrust agrees to buy stake of AIG’s Taiwan unit
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