Anbang Insurance Group of China is paying $ 1 billion to buy a controlling stake in Tong Yang Life Insurance South Korea, which extends overall procurement unit has already been seen to spend $ 10 billion in less than four months.
Anbang agreed to buy a combined share of 63 percent in the eighth largest life insurer in South Korea from three independent shareholders to ₩ 1.13 trillion ($ 998 million) or ₩ 16.700 per share, Tong Yang said in a presentation to the regulators on Tuesday.
This emerges from a dark time Anbang deal announced just a day before buying a insurance division of Dutch bank and insurer SNS Reaal for at least EUR 1.4 million ($ 1.6 billion).
The insurer and asset manager of private capital, according to a media report is considering an initial public offering this year, recently sealed a purchase $ 1.95 billion Landmark Hotel Waldorf Astoria New York. He also bought the Belgian banking Dutch insurer Delta Lloyd NV for 219 million euros.
The flurry of deals shows the global ambitions of Anbang and comes as financial enterprises in China are increasingly pointing away from home assets for growth.
"In 10 years, companies have Anbang all continents of the world," said Wu Xiaohui President of Anbang at an event at Harvard University last month, his first US high profile public appearance.
Led by Wu, who is married to a granddaughter of the late Chinese patriarch Deng Xiaoping, the politically connected Anbang has also accumulated shares owned domestic firms and banks, including China Minsheng Banking Corp, which owns 19.3 percent share.
Anbang officials could not be reached immediately for comment. Anbang has previously declined to comment on its acquisitions or participations.
KOREA IN FOCUS AGAIN
Anbang buy the 57.5 percent stake in Tong Yang power of private equity firm Vogo South Korea Investment and shares owned by two minority shareholders.
An additional ₩ 33900000000 Anbang will be paid by the sellers once the deal wins regulatory approval Seoul, according to a person with direct knowledge of the operation. The person was not authorized to discuss the matter with the media and spoke on condition of anonymity.
Both the seller and he hopes to apply for regulatory approvals in China and South Korea in late February, hoping to close the deal in late May or June buyer, the person said.
Tong Yang shares ended 3 percent to ₩ 11.850 on Tuesday. The stock has risen 7.7 percent this month amid reports of a possible sale to Anbang.
This is not the first attempt by the Chinese insurer to buy a financial firm in South Korea.
Anbang bid of $ 2.7 billion in November for control of Woori Bank - which failed after not competing bid emerged, as required by law in South Korea.
His firm won regulatory approval this month to acquire the Waldorf Hilton Worldwide Holdings Inc. for $ 1.95 billion. The Chinese company bought the Belgian insurer Fidea NV in October and agreed to buy the Belgian banking operations of Delta Lloyd NV in December.
The company will increase the capital of Vivat Dutch insurer up to € 1 billion ($ 1.14 billion) after your purchase was approved by the Dutch government, the Foreign Minister Jeroen Dijsselbloem of the nation said Monday. Vivat is the oldest insurance division of bank seized SNS Reaal NV.
Founded in 2004, the first Anbang shareholders include state-owned enterprises SAIC Motor Corp. and China Petroleum & Chemical Corp., known as Sinopec. The company is one of China 'largest conglomerates insurance ", with assets of more than 700 billion yuan ($ 112 billion) and more than 30,000 employees and 3,000 outlets, according to its website.
Tongyang closed 3 percent to ₩ 11.850 in Seoul on Tuesday, taking its rise this year to 10 percent. The number of shares sold to Anbang represents about 63 percent of the outstanding shares of Tongyang.
TheChinaInvestors is the world's #1 funding and investments network for Chinese Investors and Global Investees.