New | Sino-Ocean first to swoop on Anbang assets since state takeover
News coincides with founder Wu Xiaohui’s conviction earlier in the day to 18 years in prison with US$1.65b worth of his personal properties confiscated
Sino-Ocean Land, a company controlled by China Life Insurance, is buying Anbang Insurance’s equity stakes in a real estate venture in Beijing, becoming the first firm to swoop on major assets owned by the troubled Chinese insurer since the Chinese government took it over in February in the wake of former chairman and founder’s detention.
The market appeared to applaud the deal, with Sino-Ocean shares jumping 2.9 per cent in Hong Kong to close at HK$5.65.
The news coincided with Anbang founder Wu Xiaohui’s conviction earlier in the day in a Shanghai court to 18 years in prison for “financial fraud and embezzlement”, with 10.5 billion yuan (US$1.65 billion) worth of his personal properties confiscated.
Sino-Ocean will take over exactly half of Anbang’s equity interest in Beijing Bangbang Commercial Property Company, a wholly-owned Ambang subsidiary with a registered capital of 200 million yuan, the company said in a statement.
After the sale is complete, Sino-Ocean will contribute 100 million yuan of registered capital to Beijing Bangbang, with Anbang coughing up the rest.
Sino-Ocean will also create what it termed a strategic partnership with Anbang in five major areas: real estate development, strategic investment, real estate finance, insurance, and pensions.
