HSBC sells stakes in Ping An Insurance to CP Group

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The Thailand-based Charoen Pokphand Group (CP Group) has bought HSBC's shares in China's Ping'an Insurance Co., replacing the latter as the insurer's largest stock holder.

The China Insurance Regulatory Commission on Friday gave the nod for CP Group to buy all of HSBC's stakes in Ping'an, or 15.57 percent of stock in the country's second-largest insurer.

According to the Shanghai Securities News, the deal worth 9.39 billion U.S. dollars is expected to be completed on February 6.

The news has pushed the stocks of Ping'an higher on Friday.

HSBC said in a statement in December that HSBC Insurance Holdings and the Hong Kong and Shanghai Banking Corporation Limited, would sell their entire shareholdings in Ping'an Insurance Co. to CP Group at 59 HK dollars per share, or about 7.6 dollars.

The two are indirect wholly-owned subsidiaries of HSBC Holdings plc.

CP Group is a multinational conglomerate with major business in agriculture.

HSBC began to hold stakes in Ping'an in 2002 and has increased its shares several times.

Chief Executive Stuart Gulliver has said HSBC would put more focus on its core business.

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