AIA amongst bidders for Bank of East Asia's life insurance arm

The bank could raise about $500m to $600m from a potential transaction.

AIA Group and Henry Cheng-backed investment firm China Strategic Holdings are amongst the final bidders for Bank of East Asia’s life insurance unit, reports Bloomberg, citing sources familiar to the matter.

The companies have submitted binding bids for the asset, proceeding into the final stage of negotiations, sources said, adding that BEA could raise about $500m to $600m from a potential transaction.

An announcement on the sale outcome could come as early as this month, whilst other bidders could emerge and talks could still be delayed or even fall apart, they added.

In September, BEA began the process of selling its life insurance unit in a bid to boost profitability and lift its shares. As part of the deal, the lender is also seeking to enter into a long-term exclusive distribution agreement that will provide an ongoing source of revenue as a distributor of insurance products through its platform.

Here’s more from Bloomberg.