OCBC selling stake in Hong Kong Life Insurance for $103 million
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OCBC has a 33.3 per cent stake in Hong Kong Life through its Hong Kong subsidiary.
ST PHOTO: LUTHER LAU
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SINGAPORE - Singapore-listed lender OCBC Bank is selling its entire stake in loss-making insurer Hong Kong Life for HK$589.3 million (S$103 million).
OCBC has a 33.3 per cent stake in Hong Kong Life through its Hong Kong subsidiary.
The bank said in a regulatory filing on Dec 27 that it has agreed to sell its stake to Guangzhou-based Yue Xiu Enterprises (Holdings). The deal is subject to regulatory approvals.
Hong Kong Life was set up in 2001 and founded by five of the territory’s financial institutions – Asia Insurance Company, Chong Hing Bank, CMB Wing Lung Bank, OCBC Bank (Hong Kong) and Shanghai Commercial Bank.
OCBC aside, the other four founders of Hong Kong Life each hold a 16.67 per cent stake.
They are also selling their stakes to Yue Xiu, as stated in a regulatory filing on Dec 27.
In 2023, Hong Kong Life posted a net loss of HK$484.1 million before taxation and extraordinary items, narrowing the HK$504.9 million loss recorded in 2022.
OCBC had said the transaction is not expected to have a material impact on the group’s net tangible assets or earnings per share for the financial year ending Dec 31, 2024.
OCBC shares closed 1.1 per cent higher on Dec 30 at $16.70.
