Chinese Consortium to Buy Singapore's Asia Capital Reinsurance
October 05 2016 - 10:10AM
Dow Jones News
A Chinese consortium of two state-owned companies has reached a
deal to buy Singaporean reinsurer ACR Capital Holdings, ACR said in
an announcement Wednesday. The consortium will pay for $1 billion
for ACR, according to a person familiar with the situation.
Shenzhen Qianhai Financial Holdings Co. and Shenzhen Investment
Holdings Co. will acquire a 100% stake in ACR from its
shareholders, which include Singaporean state investment company
Temasek Holdings Pte. Ltd., Malaysian sovereign-wealth fund
Khazanah Nasional Berhad, Japanese industrial conglomerate Marubeni
Corp. and UK-based investment company 3i Group PLC, ACR said.
In a separate announcement, 3i said it is selling its stake in
ACR for about 182 million pounds ($232 million), and that the
transaction is expected to close by early 2017. The firm invested
$200 million in ACR in 2006, according to its website.
Insurers are attractive assets for Chinese companies, which have
been on a global shopping spree this year. The country has
announced outbound investments amounting to a record $174 billion
in the first nine months of this year, Dealogic data show.
Many other Chinese insurers bid for ACR, including Foresea Life
Insurance Co., an insurer based in the same city of Shenzhen as the
winning consortium; a consortium consisting of China Taiping
Insurance Holdings Co. and Hong Kong's Mason Financial Holdings
Ltd.; and Peak Reinsurance Co., controlled by China's Fosun
International Ltd, people familiar with the situation said in
July.
Shenzhen Qianhai Financial Holdings is wholly owned by Qianhai
Authority, the administrative body of the Qianhai Free Trade Zone
in Shenzhen. It owns a 20% stake in recently established Qianhai
Reinsurance Co.
Shenzhen Investment Holdings Co. is owned by the Shenzhen
government. It is the largest shareholder in a number of leading
financial institutions, including Ping An Insurance (Group) Company
of China, China's second-largest insurer.
Besides Singapore, ACR has offices in Hong Kong, Dubai, Taiwan,
Japan, Korea, Vietnam and India.
Write to P.R. Venkat at venkat.pr@wsj.com and Kane Wu at
Kane.Wu@wsj.com
(END) Dow Jones Newswires
October 05, 2016 09:55 ET (13:55 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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