China Taiping Insurance Holdings Company Limited has announced that it’s considering the sale of around 25% of its interest in its reinsurance subsidiary, Taiping Reinsurance Company Limited (TPRe), to external investors.
The Board of China Taiping has revealed that the company is considering a potential issuance of shares of TPRe, its indirect wholly-owned reinsurance subsidiary, to external investor(s).
According to an announcement by the company, should this materialise, it would result in a sale of approximately 25% of the interest of China Taiping in the reinsurer after such issuance.
The targeted amount of gross proceeds to be raised from the Potential Sale is roughly HK$3,100,000,000 (USD 400 million).
“Such targeted amount of gross proceeds is subject to the final bid price to be offered by the successful bidder and the consideration shall be payable in accordance with the terms and conditions of the definitive agreement(s) between the parties,” says China Taiping.
The company’s Board emphasises that currently, no binding agreement with respect to the Potential Sale has been entered into by the company, while there is no guarantee that any definitive transaction will take place.