OCBC Hong Kong, a unit of Singapore’s OCBC Financial institution, has signed a share buy settlement to divest its full 33.33% holding in Hong Kong Life Insurance coverage to funding holding firm Yue Xiu Enterprises.
The all-cash transaction entails the sale of 290 million unusual shares for S$103m ($75.8m), OCBC said in an change submitting.
The deal is topic to straightforward closing situations together with regulatory approvals.
As of 31 December 2023, Hong Kong Life reported internet asset worth of S$180m ($132.5m).
Submit completion of the deal, Hong Kong Life will now not be related to OCBC Hong Kong or OCBC Financial institution.
OCBC Group famous that the deal is not going to have a “materials impression” on its internet tangible property or earnings per share for the monetary 12 months ending 31 December 2024.
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Asia Insurance coverage, Chong Hing Insurance coverage Firm, Shanghai Business Financial institution, and CMB Wing Lung Company have additionally agreed to promote their pursuits in Hong Kong Life to Yue Xiu Enterprises, pending regulatory consent.
The sellers opine that having a single shareholder in management could be higher for the expansion of Hong Kong Life.
In response to the corporate’s administrators, the sale will unlock “substantial worth” for shareholders.
In a earlier try in 2018, OCBC terminated its plan to promote a 33.33% stake in Hong Kong Life attributable to non-fulfilment of closing situations.
Hong Kong Life affords a variety of companies, together with common life, medical & dread illness protection, unintentional & incapacity protection, and time period life insurance coverage.
The enterprise reported a internet lack of earlier than taxation and extraordinary gadgets of HK$484.1m in 2023, in contrast with HK$504.9m within the prior 12 months.
