OCBC Bank yesterday announced it has terminated the sale of its 33.33 per cent stake in Hong Kong Life Insurance, one of the last remaining independent life insurance businesses in the territory, saying that closing conditions had not been met before a deadline.
The long stop date for the deal had been Sept 30, OCBC said, after the deadline was extended from March 20 this year.
The bank did not provide details on what conditions were not met or why the long stop date had not been further extended.
In accordance with the terms of the share sale agreement, the buyer, First Origin International, has forfeited its deposit of HK$710 million (S$124 million) to the seller, OCBC subsidiary OCBC Wing Hang Bank.
OCBC Wing Hang Bank first announced in March last year that it would sell its 140 million ordinary shares in Hong Kong Life for HK$2.4 billion to First Origin International.
Following the sale, Hong Kong Life would have ceased to be an associated company of OCBC Wing Hang Bank and OCBC Bank, and OCBC Wing Hang Bank would enter into a distribution agreement to distribute Hong Kong Life's products in Hong Kong.
Since the sale has been terminated, OCBC Wing Hang Bank will retain its stake in Hong Kong Life.
Healthway Medical Corporation
Healthway Medical Corporation is divesting its entire stake in the loss-making CLAAS Medical Centre in Singapore for $150,000.
Healthway's wholly owned subsidiary Unimedic had entered into a sale and purchase agreement on Sunday with Dr Liew Kou Chuen to sell 499,993 shares in CLAAS, which represents Unimedic's entire 99.9 per cent stake. Dr Liew holds the remaining 0.1 per cent.
CLAAS owns 100 per cent of BCNG, which provides medical aesthetics and wellness treatments under the NeuGlow brand.
The loss on disposal is expected to amount to $68,000.
Healthway said: "As part of its business optimisation strategy, the management has committed to reviewing the performance of all business units to improve operational efficacy. In line with the group's intent and continual efforts to enhance operations, the group has decided to exit the wellness business through the proposed disposal."
The net asset value of CLAAS and BCNG as of June 30 was about $200,000.