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HSBC sells Ping An stake for $7.4 billion

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Staff writer |
Ping An InsuranceChina Insurance Regulatory Commission (CIRC) has approved the sale of HSBC's $7.4 billion stake in Ping An Insurance.


On December 5 2012, HSBC Holdings announced that its indirect wholly-owned subsidiaries, HSBC Insurance Holdings Limited and The Hongkong and Shanghai Banking Corporation Limited, had agreed to sell their entire shareholdings in Ping An Insurance Company of China to indirect wholly-owned subsidiaries of Charoen Pokphand Group Company.

These subsidiaries are All Gain Trading Limited, Bloom Fortune Group Limited, Business Fortune Holdings Limited and Easy Boom Developments.

Tranche 1 shares were transferred by HSBC Insurance to the Purchasers on December 7, 2012. The aggregate consideration for the Tranche 1 Shares was HK$15,145m (approximately $1,954m), equivalent to HK$59.00 per share. It was agreed that the remaining 976,121,395 shares, Tranche 2, would be transferred by HSBC Insurance and HSBC Asia Pacific to the Purchasers following, and conditional upon, receipt of regulatory approval from the China Insurance Regulatory Commission, provided that CIRC approval was received by 11:59pm on February 1, 2013.

Since HSBC has been notified that CIRC approval was granted, the consideration for the Tranche 2 Shares (being an aggregate of HK$57,591m (approximately US$7,431m) equivalent to HK$59.00 per share) has been paid by the Purchasers in cash. Completion of the transfer of the Tranche 2 Shares is expected to take place on February 6, 2013.

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