Oversea-Chinese Banking Corporation (OCBC) announced that its wholly-owned subsidiary, OCBC Bank (Hong Kong) is selling its entire 33.33% stake or 190 million shares in Hong Kong Life Insurance to Yue Xiu Enterprises (Holdings) Limited.
The net asset value of the entire Hong Kong Life was HK$1.02 billion as at Dec 31, 2023.
The consideration for the sale shares is HK$589.3 million, payable upon completion and will be satisfied wholly in cash. The consideration was arrived at following arm’s length negotiations on a willing-buyer, willing-seller basis, taking into account, among others, factors such as the net asset value and the embedded value.
The transaction is not expected to have a material impact on the net tangible assets or earnings per share of OCBC Group for the financial year ending Dec 31, 2024.
Shares in OCBC closed at $16.52 on Dec 27.
