OCBC to Sell Stake in Hong Kong Life Insurance to Yue Xiu Enterprises (Holdings)
OCBC has agreed to sell its entire stake in Hong Kong Life Insurance to a Hong Kong investment holding company, Yue Xiu Enterprises (Holdings), for HK$589.3 million (S$103 million).
Details of the Sale
OCBC, through its wholly owned subsidiary OCBC Bank (Hong Kong), holds a 33.3 per cent stake in Hong Kong Life, represented by 290 million shares.
The agreement is subject to relevant regulatory approvals.
Financial Implications
As at December 31, 2023, the net asset value of the entire Hong Kong Life was HK$1.02 billion.
The completion of the transaction will be conditional upon customary closing conditions, including but not limited to regulatory approvals.
No Material Impact on OCBC’s Financial Performance
OCBC said that the transaction is not expected to have a material impact on the group’s net tangible assets or earnings per share for the financial year ending December 31, 2024.
Market Reaction
Shares of OCBC closed S$0.03 or 0.2 per cent higher at S$16.52 on Friday, before the announcement.
Conclusion
The sale of OCBC’s stake in Hong Kong Life Insurance to Yue Xiu Enterprises (Holdings) is a strategic move that is expected to have no material impact on the group’s financial performance. The transaction is subject to regulatory approvals and is expected to be completed in the near future.
Frequently Asked Questions
Q: What is the value of the sale?
A: The sale is valued at HK$589.3 million (S$103 million).
Q: What is the stake being sold?
A: OCBC is selling its entire 33.3 per cent stake in Hong Kong Life Insurance.
Q: What is the expected impact on OCBC’s financial performance?
A: The transaction is not expected to have a material impact on the group’s net tangible assets or earnings per share for the financial year ending December 31, 2024.
Q: How did OCBC’s shares react to the announcement?
A: Shares of OCBC closed S$0.03 or 0.2 per cent higher at S$16.52 on Friday, before the announcement.
