Hong Kong – OCBC Hong Kong has announced that it has entered into an agreementto sell its entire 33.33% stake, represented by 290,000,000 ordinary shares in the capital of Hong Kong Life Insurance to Yue Xiu Enterprises.
The net asset value of the entire Hong Kong Life was HK$1,024m as at 31 December 2023 (approximately S$180m). The consideration for the sale shares is HK$589.3m (approximately S$103m), payable upon completion and will be satisfied wholly in cash.
“The consideration was arrived at following arm’s length negotiations on a willing-buyer, willing-seller basis, taking into account among others, factors such as the net asset value and the embedded value,” OCBC said in a statement.
The completion of the transaction will be conditional upon customary closing conditions including but not limited to regulatory approvals.
Upon completion of the sale of the Sale Shares, Hong Kong Life will cease to be an associated company of OCBC Hong Kong and OCBC Bank.
The transaction is not expected to have a material impact on the net tangible assets or earnings per share of OCBC Group for the financial year ending 31 December 2024.
