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OCBC says sale of Hong Kong Life Insurance cancelled

OCBC says sale of Hong Kong Life Insurance cancelled

The OCBC logo outside one of its branches in Singapore. (File photo: Ngau Kai Yan)

SINGAPORE: Oversea-Chinese Banking Corp (OCBC) said on Monday (Oct 1) that a planned sale of Hong Kong Life Insurance to investment firm First Origin had been called off after the buyer failed to meet certain conditions before a Sep 30 deadline.

OCBC, via a subsidiary OWHB in Hong Kong, owns a third of the insurer - one of the last remaining independent life insurance businesses in Hong Kong. OWHB is one of five owners including Chong Hing Insurance, a unit of Chong Hing Bank.

READ: OCBC's Q2 net profit rises 16% to S$1.2 billion, beats estimates

First Origin International Ltd agreed to acquire the business in March last year for HK$7.1 billion (S$1.24 billion), according to two of the sellers.

"OWHB together with the other sellers have terminated the sale ... on the basis that the closing conditions have not been satisfied," Singapore-based OCBC said in a statement. It did not specify which conditions were not met.

First Origin International Limited forfeited a deposit of HK$710 million to the sellers, OCBC said.

The deal had been awaiting approval from the Hong Kong regulator.

Source: Reuters/cy

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