TAIPEI (Reuters) – Fubon Financial (2881.TW), parent of Taiwan’s No.2 insurer, said on Monday it plans to raise up to $900 million from an overseas stock sale in a bid to strengthen capital health.
Fubon, which sources have said is teaming up with the Carlyle Group to bid for AIG’s (AIG.N) Taiwan insurance unit, would use the money raised to help its future operations.
“We would use the money to boost our operation fund, improve capital structure and cut funding costs,” the company said in a statement to the Taiwan stock exchange.
Global buyout funds Carlyle and Bain Capital have been shortlisted for second-round bids for the unit of AIG, Nan Shan Life, AIG in a deal estimated to be worth more than $2 billion, sources in Taiwan and Hong Kong said in July. [ID:TP181377]
Before the announcement, Fubon shares ended down 2 percent, trailing the main index’s 0.21 percent gain. (US$1=T$32.8) (Reporting by Faith Hung)