Thailand's CP Group to Buy 30% of China's Huaxia Life Insurance
Liao Shumin
DATE:  Aug 24 2019
/ SOURCE:  yicai
Thailand's CP Group to Buy 30% of China's Huaxia Life Insurance Thailand's CP Group to Buy 30% of China's Huaxia Life Insurance

(Yicai Global) Aug. 23 -- Charoen Pokphand Group has signed a deal to take a 30 percent stake in Huaxia Life Insurance, making Thailand's largest conglomerate the biggest shareholder in the major Chinese insurer, Securities Times reported recently.

The deal requires regulatory approval, the report cited sources as saying. It did not provide details on the deal's value or the sellers' identities. Seven companies own more than 5 percent of Huaxia Life, with Beijing Qianxi Shihao Electronic Technology and Beijing Cenpower Software holding 20 percent each, according to data from business information search platform Qixin.

Ping An Insurance Group, China's biggest insurer by value, has been in negotiations to buy Huaxia Life, the South China Morning Post reported two days ago, citing sources familiar with the matter. The talks "had gone on in fits and starts for several months since last year, stalling over the asking price," the report said.

Set up in 2006, Tianjin-based Huaxia Life had CNY513 billion (USD72.4 billion) in assets at the end of last year, and earned CNY158.3 billion in original insurance premium income to rank it fourth. Its first-half net profit was CNY522 million based on OIPI of CNY124 billion.

CP Group is a renowned multinational founded in Bangkok in 1921 by the immigrant Chinese brothers Chia Ek Chor and Chia Siew Whooy. It established Shenzhen's first wholly foreign-owned enterprise in 1979, and with more than CNY120 billion in investments, the group has set up over 400 businesses in China, employing 80,000-plus staff and making over CNY130 billion in annual sales.

The group is also among the foreign-funded companies with the highest investments and most investment projects in China.

Editor: Ben Armour

Follow Yicai Global on
Keywords:   CP Group,Hua Insurance