UCF backs First Origin’s Hong Kong Life purchase
BEIJING: China UCF Group Co is backing the acquisition of Hong Kong Life Insurance Ltd in a deal valuing the insurer at US$914 million (RM4.04 billion).
Hong Kong Life’s owners agreed to sell their holdings to First Origin International Ltd.
It didn’t disclose the buyer’s ultimate shareholders.
UCF Group was the owner of First Origin, said a spokesman for Hong Kong Life. First Origin’s shareholders could still change to allow minority partners to join UCF Group in the Hong Kong Life purchase, said UCF.
The company agreed to continue distributing Hong Kong Life’s policies on a non-exclusive basis through the branch networks of most of the banks that previously controlled the insurer, said a source.
UCF’s deal marks at least the third attempt by a mainland financial institution to buy a Hong Kong insurer as they seek to cater to surging demand for offshore insurance-linked products.
The buyer will need to get regulatory approval at a time of rising scrutiny on overseas dealmaking after the US$247.9 billion wave of foreign acquisitions last year by China firms. Bloomberg