Ping An mulls sale of Founder Group's life insurance business
Potential sale could value Founder's life insurance unit at as much as US$1b
Shenzhen
PING An Insurance Group is considering a sale of Founder Group's life insurance business, people familiar with the matter said, in what would be the first disposal after the latter's court-led restructuring.
The Chinese insurance giant is working with financial advisers on the potential sale, which could value Founder's life insurance unit at as much as US$1 billion, the sources said, asking not to be identified because the matter is private.
Other insurers and investment funds have shown preliminary interest in acquiring the business, the sources said.
Considerations are at an early stage and no final decision has been made, the sources added.
The new company was created following the restructuring of Peking University Founder Group Corp, the troubled business arm of a top Chinese university. Its assets include Founder Securities, Founder Technology Group and China Hi-Tech Group. In July, a Chinese court approved a restructuring plan in which a consortium including Ping An and Zhuhai Huafa Group agreed to invest 53.7 billion yuan (S$11.3 billion) to 73.3 billion yuan into the company.
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Earlier this year, Ping An said it would buy a 51.1 per cent to 70 per cent stake in Founder Group for as much as 50.75 billion yuan.
Ping An shares pared losses following Bloomberg News' report, closing 3.8 per cent lower on Monday. BLOOMBERG
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