OCBC Hong Kong sells 33% stake in Hong Kong Life
Yue Xiu Enterprises (Holdings) bought the stake from the bank.
OCBC Bank (Hong Kong) has signed a Share Purchase Agreement to sell its 33.33% stake, equivalent to 290 million ordinary shares, in Hong Kong Life Insurance Limited to Yue Xiu Enterprises (Holdings) or its wholly-owned subsidiary.
Upon completion, Hong Kong Life will no longer be an associated company of OCBC Hong Kong or OCBC Bank.
The net asset value of Hong Kong Life as of December 31, 2023, was $130m (~S$180m).
The agreed sale price for the shares is $75.8m (~S$103m), payable in cash upon completion.
The valuation was determined through arm’s length negotiations, considering factors such as net asset value and embedded value.
OCBC Group stated that the sale is not expected to have a material impact on its net tangible assets or earnings per share for the financial year ending 31 December 2024.
($1.00 = S$1.37)
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