OCBC Bank has announced the sale of its entire 33.3% stake in Hong Kong Life Insurance to Yue Xiu Enterprises (Holdings) for HK$589.3 million (approximately S$103 million).
The stake, which represents 290 million shares, is held through OCBC’s wholly owned subsidiary, OCBC Bank (Hong Kong). The transaction, which is contingent upon regulatory approvals, will see OCBC’s association with Hong Kong Life come to an end upon its completion.
As of December 31, 2023, Hong Kong Life’s net asset value stood at HK$1.02 billion. OCBC confirmed in a regulatory filing on December 27 that the sale is expected to meet customary closing conditions, including necessary regulatory clearances.
The banking group also stated that the sale is unlikely to have a significant impact on its net tangible assets or earnings per share for the financial year ending December 31, 2024.
Following the announcement, OCBC’s share price rose by S$0.03, or 0.2%, to close at S$16.52 on December 27.
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