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 (US$75.9 million).
OCBC, through its wholly owned subsidiary OCBC Bank (Hong Kong), has a 33.3% 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 31 December 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 27 December 2024 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 31 December 2024.
Shares of OCBC closed S$0.03 or 0.2% higher at S$16.52 last Friday, before the announcement.