HSBC to sell entire stake in Ping An Insurance for US$9.38bn
05 December 2012
News, Asia, China, Global
By Hui Ching-hoo
HSBC Insurance Holdings and HSBC Asia Pacific, indirect wholly-owned subsidiaries of HSBC Holdings, have agreed to sell their entire shareholdings in Ping An Insurance to Charoen Pokphand Group at a price of HK$72 billion (US$9.38 billion), equivalent to HK$59 per share.
According to a statement released via the Hong Kong Stock Exchange on December 4, HSBC’s stake represents 15.57% of the issued share capital of Ping An Insurance. Under the agreement, 20.8% of the shares will be transferred by HSBC Insurance to the purchasers on December 7. The acquisition of the remaining approximately 79.2% of the shares will be financed partly in cash and partly under a facility agreement with the Hong Kong branch of China Development Bank Corporation.
Since 2002, HSBC has spent $1.6 billion building up its shareholding in Ping An. The bank valued its holding in the Shenzhen-based insurer at $6.37 billion at the end of December last year.
Charoen Pokphand Group is a multi-national conglomerate in Thailand which is mainly engaged in agro-industry & food, retail and telecommunication.
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