China Strategic eyes more shares in Chinatrust Financial

Nov. 27, 2009 (China Knowledge) - China Strategic Holdings Ltd<0235> plans to increase its stake in Chinatrust Financial Holding Co after it acquires a 9.95% stake in the Taiwan-based consumer-banking giant, the Wall Street Journal reported, citing Chief Executive Raymond Or as saying.

Or said China Strategic will raise its shareholding in Chinatrust to help the latter increase its stake in Nan Shan Life. Chinatrust has said it expects its ownership of Nan Shan Life Insurance Co to exceed 50% in three years.

China Strategic will remain committed to the local market even if it eventually releases its controlling stake in Nan Shan Life to Chinatrust, Or said, adding that the firm's investment in Taiwan will not leave the local market.

Last week, Chinatrust agreed to sell the 9.95% stake to China Strategic in exchange for a 30% stake in Nan Shan Life, AIG's Taiwan unit.

China Strategic, primarily a battery maker owned by a group of Hong Kong investors, and Hong Kong investment company Primus Financial Holdings Ltd agreed last month to jointly spend US$2.15 billion acquiring a 97.57% stake in Nan Shan Life. Chinatrust was one of the bidders for the unit.

Shares of China Strategic ended flat at HK$0.56 yesterday.