Jack Ma-backed Yunfeng leads $1.7 bn purchase of MassMutual Asia unit
SINGAPORE/ HONG KONG: Yunfeng Financial Group said it would be the main investor in a $1.7 billion acquisition of insurer MassMutual International’s Hong Kong unit — a deal that sent shares in the Jack Ma-backed finance firm soaring as much as 30 per cent. The cash and stock deal will add insurance products to the Yunfeng’s existing fintech-focused financial services, in what the company called a milestone in its ambitions to become a financial conglomerate.
Yunfeng will own 60 per cent of MassMutual Asia. The rest will be owned by other investors such as Ant Financial Services, an affiliate of billionaire Jack Ma’s Alibaba, as well as Singapore sovereign wealth fund GIC Private Ltd and Chinese Internet and telecoms firm SINA Corp.
The deal will see MassMutual, Yunfeng and Ant enter into a strategic cooperation agreement to explore future business opportunities. Ant has also been expanding rapidly, delving into a range of businesses from wealth management to micro lending. GIC said in a statement that the prospect of collaboration between the three firms could create “significant value” and that it saw consistent growth for MassMutual Asia in Hong Kong’s life insurance industry.
Yunfeng will pay the US insurer $1 bn in cash and 800 million shares valued at HK$6.50 apiece. MassMutual will have a 24.8 pc stake in Yunfeng’s enlarged share capital.