China relaunches sale of Dajia Insurance Group Co., the company that took over most of the struggling Anbang Insurance Group Co.’s operations, as government seeks to hand over the business to private investors, people say knowing the subject. .
The advisers are working on a sale of Dajia that could value the state-owned company at around $ 3 billion, the people said, asking not to be identified as the case is private. The Beijing-based insurer has attracted preliminary interest from bidders, including other insurers and investment funds, and non-binding offers are expected to be received as early as this month, one of the people said. .
It would be at least the second attempt to sell the company after an effort last year, Bloomberg News reported. Divestment can be spread over multiple transactions, the people said.
Discussions are ongoing and there is no certainty the current process will lead to a deal, the people said. A representative for Dajia declined to comment. China’s Banking and Insurance Regulatory Commission did not immediately respond to requests for comment.
Anbang has become emblematic of the unrestrained appetite for international trophies displayed by some of China’s largest conglomerates. Authorities took control of Anbang in February 2018 and subsequently sentenced former President Wu Xiaohui to 18 years in prison for fundraising fraud and embezzlement.
As part of the state-controlled Anbang restructuring, China established Dajia Insurance Group in 2019 to take over its main insurance business. The new entity acquired the interests of Anbang Life Insurance, Anbang Annuity Insurance and Anbang Asset Management, as well as certain assets of Anbang Property & Casualty Insurance.
– With the help of Zhang Dingmin.
Photograph: Signage is displayed at the top of Block A of the Anbang Financial Center in Beijing, China. Photo credit: Giulia Marchi / Bloomberg.
Copyright 2021 Bloomberg.
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