The sale is not expected to have an impact on the group’s net tangle assets or earnings per share
OCBC has agreed to sell its entire stake in Hong Kong Life Insurance to a Hong Kong investment holding company for HK$589.3 million (S$103 million).
OCBC, through its wholly owned subsidiary OCBC Bank (Hong Kong), has a 33.3 per cent stake in Hong Kong Life, represented by 290 million shares.
The agreement was entered into with Yue Xiu Enterprises (Holdings). The sale is subject to relevant regulatory approvals.
As at Dec 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, said OCBC in a regulatory filing on Friday (Dec 27) evening.
Upon completion of the sale, Hong Kong Life will cease to be associated with OCBC and OCBC Hong Kong.
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 Dec 31, 2024.
Shares of OCBC closed S$0.03 or 0.2 per cent higher at S$16.52 on Friday, before the announcement.
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