View all newsletters
Receive our newsletter - data, insights and analysis delivered to you
  1. News
November 6, 2019updated 07 Nov 2019 6:41am

Chinese authorities in talks to dispose Anbang stake

Chinese authorities are in negotiations with investors over divestment of its 98% interest in Dajia Insurance, previously trading as Anbang , reported Financial Times.

The talks are said to be in early stages and may involve a complete or partial sale.

The potential value of a deal has not been revealed.

According to the report, prospective buyers may come both from the private sector or state-owned enterprises.

Anbang has been going through troubled times lately.

In its prime, the firm pursued an aggressive growth strategy and acquired banking, insurance and property assets, including the Waldorf Astoria Hotel in New York.

However, it came under the scanner after its chairman Wu Xiaohui was charged with fraud and later sentenced to 18 months imprisonment.

Subsequently, the Chinese government assumed control of the insurer and formed Dajia Insurance to manage Anbang’s business. The firm secured a $10bn bailout from the China Insurance Security Fund (CISF).

Previously, CISF intended to cash out of the group, but after talks last year, the entity is mulling the option of offloading the business in parts and retaining a stake in it.

Anbang recently sold a $5.8bn hotel portfolio to South Korea’s Mirae Asset Management .

This July, Chinese regulators reportedly directed Anbang to accelerate the sale of its entire holding in health insurance unit Hexie Health Insurance.

Topics in this article:
NEWSLETTER Sign up Tick the boxes of the newsletters you would like to receive.
SUBSCRIBED