Standard Life Asia sold to Chinese joint venture
The deal marks the second purchase of a Hong Kong-based insurer by a mainland firm in the past two weeks
British insurer Standard Life has agreed to sell its Hong Kong arm, Standard Life Asia, to its Chinese joint venture, Heng An Standard Life Insurance Company.
The move makes Heng An the second mainland enterprise to buy a Hong Kong-based insurance company in the space of two weeks.
London-listed Standard Life announced the deal on Wednesday morning and said the transaction will need approval from regulators in both Hong Kong and the mainland, which may take about 18 months. The final amount payable will be calculated on the date of completion and will be payable in cash.
A fortnight ago, a mainland consortium that included Beijing-based UCF Group agreed to pay HK$7.1 billion (US$910 million) to buy the entire stakes of Hong Kong Life from five local financial firms including Asia Financial Holdings and Chong Hing Bank.
Standard Life Asia, wholly owned by Standard Life, was established in 1999 in Hong Kong to sell life insurance and financial products through independent financial advisers and partners.
The buyer, Heng An Standard Life Insurance is a 50-50 joint venture between Standard Life and Tianjin TEDA International Holding (Group). Established in 2003, it sells life insurance and other investment products in 64 Chinese cities and eight provinces, serving more than five million customers.