Evergrande to pay $617 million for 50% of Great Eastern Life
Staff writer ▼ | November 23, 2015
Chinese property developer Evergrande Real Estate Group will pay $617 million for a 50 percent stake in a joint-venture life insurer.Article continues below
The deal was approved by China's insurance regulator. Evergrande Nanchang, an indirect wholly owned subsidiary, will pay 3,939,110,600 yuan ($617.08 million) for a 50 percent stake in Great Eastern Life Assurance China. After the transaction the insurer will be called Evergrande Life.
"The acquisition is a strategic deployment for the Group to enter the insurance sector. Currently, China's insurance sector has entered a fast track of development, where insurance licenses have their own unique capital investment value," Evergrande said.
The company said it will promote its insurance services in its more than 300 new housing developments.
Great Eastern was formed as a joint-venture by the Chongqing and Singapore governments. Evergrande will buy the shares held by the Chongqing City Construction Investment and the Chongqing Land. The Chongqing Casin and The Great Eastern Life Assurance will each retain their 25 percent holdings.
The insurer made a loss in each of the two previous years ended December 31, according to the filing with the Hong Kong Stock Exchange. ■ What to read next
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