Chinatrust is one of the four bidders for AIG's Nan Shan unit

Chinatrust Financial has planned to raise T$44.35 billion ($1.34 billion) after it had submitted a bid for AIG’s Taiwan Nan Shan unit – reported Reuters.

Chinatrust stated that it has planned to sell 2.5 billion common shares at T$17.74 per share through a private placement.

Reportedly, it stated that the purpose of the fund raising is to strengthen the capital and financial structure and to help operations and business expansion in the long term. Chinatrust is one of the four bidders for AIG’s Nan Shan unit.

The other three have offered less than $1.5 billion, below the $2 billion target AIG expected, after which the bidding process was in doubt.

Hong Kong-based Primus Financial has ventured with China Strategic, the Carlyle Group partners Taiwanese partner Fubon Financial, while Cathay Financial was bidding on its own for the Taiwanese unit.

Chinatrust Financial Holding (CFHC) is a financial services group. The group, apart from banking services, also offers property/casualty insurance, life insurance, and investment services.