Chinatrust Provides Update On AIG’s Taiwan Unit, May Open Shanghai Branch

Chinatrust and global buyout firm Bain Capital are one of the four potential buyer groups in the final round of bidding for AIG's Taiwan unit, Nan Shan

Chinatrust, a Taiwan-based credit card issuer, has declared that it is capable of managing AIG’s Taiwan insurance unit, while it would establish a branch in Shanghai – reported Reuters.

Chinatrust and global buyout firm Bain Capital are one of the four potential buyer groups in the final round of bidding for AIG’s Taiwan unit, Nan Shan. The deal is worth approximately $2 billion.

Meanwhile, Chinatrust will open a branch or subsidiary in Shanghai after Taiwan inks a financial services agreement with China. Chinatrust and domestic rivals are in the hunt for the government to sign a financial services agreement with China.

Chinatrust slashed its January-June profit earlier this month by 93% to T$353 million on additional provisions to compensate clients who bought structured notes tied to failed Lehman Brothers, as quoted in Reuters.