HSBC to sell entire stake in China's Ping An Insurance to Thai group for $9.38 billion

HSBC today said that it will sell its entire 15.57 per cent stake in China's Ping An Insurance to an affiliate of Charoen Pokphand Group (CP Group), a group linked to Thailand's richest man, Dhanin Chearavanont, for $9.38 billion in cash.

The stake will be sold to All Gain Trading Ltd, Bloom Fortune Group Ltd, Business Fortune Holdings Ltd and Easy Boom Developments Ltd, all of whom are indirect wholly-owned subsidiaries of CP Group.

HSBC will sell 1.23 billion Hong Kong-traded shares, representing 15.57 per cent of the issued share capital of Ping An Insurance, for HK$59 per share.

London-based HSBC said that it would complete the sale in stages, with about a fifth of the stake to be transferred to the buyers on 7 December, and the remainder is still subject to approval by the China Insurance Regulatory Commission.

Commenting on the sale, HSBC CEO Stuart Gulliver, said, "This transaction represents further progress in the execution of the Group's strategy. China remains a key market for the Group and we will strengthen our focus on growing our own operations and building on our long-term strategic banking partnership with the Bank of Communications."

Last month, HSBC had confirmed a Chinese language daily Hong Kong Economic Journal report that it was in talks to sell the stake in China's second-largest insurer. (See: HSBC in talks to sell its 15.6 % stake worth $9 bn in China's Ping An Insurance)