Ping An keen on Prudential’s Asian ops

BEIJING: Ping An Insurance (Group) Co, the largest Chinese insurer by market value, has evaluated acquiring Prudential Plc’s Asia business, said people familiar with the matter.

Ping An has sounded out the Chinese government about whether it would be supportive of a deal, according to one of the people.

The Shenzhen-based insurer had discussed potential financing options with banks, said another person.

Deliberations were at an early stage, said the people.

Shares of Prudential rose as much as 4.4 per cent, before paring gains to 3.2 per cent as of 3.49pm in London.

Prudential’s business in Asia, including its Eastspring asset management unit, could be valued at £40 billion (RM209.52 billion), according to a sum-of-theparts estimate from Panmure Gordon & Co analyst Barrie Cornes.

Potential buyers might have to pay a premium to that to gain control, said Cornes.

It would mark Ping An’s biggest-ever acquisition by far, and would likely be one of the largest Chinese overseas deals in a year marked by growing resistance to investment from China.

Ping An had about US$81 billion (RM329.7 billion) of cash and equivalents as of March 31 after generating US$26 billion of free cash flow in the first quarter, data compiled by Bloomberg show.

Shares in Ping An have retreated 13 per cent this year in Hong Kong, trimming its market value to US$160 billion.

Prudential was valued at £46 billion as of Tuesday’s close.