Primus consortium and AIG amend Nan Shan purchase agreement

$325 million of the purchase price will be placed in escrow to support Nan Shan's capital ratio as Primus and China Strategic try to convince the Taiwan regulator to approve the acquisition of the life insurer.

Primus Financial Holdings and China Strategic Holdings, which agreed to buy Taiwanese insurer Nan Shan Life Insurance from American International Group last October for $2.15 billion, said on Friday that they have amended the purchase agreement to provide additional support for Nan Shan's capital ratio.

Under the revised agreement, $325 million of the purchase sum will be placed in escrow for a four-year period, supposedly in a bid by the Primus-led consortium and AIG to finally secure regulatory approval for the transaction. AIG needs the money as it attempts to repay a $182.3 billion bailout by the US government in 2008 and would be particularly keen to ensure that this deal goes through now that...

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