A combined stake of 98.7 per cent in the Chinese insurance firm Dajia Insurance Group, which had been recently rehashed and formed into a new entity out of the beleaguered Anbang Insurance Group, is planned to be sold by two Chinese state investors of the company which amounts to a total value of 33.6 billion yuan ($5.19 billion), said reports quoting information from an auction filing recently.
All of its 98.23% stake in Dajia for 33.38 billion yuan, is planned to be auctioned off by one of the state insurers, China Insurance Security Fund Co Ltd, which has come to be known as the state rescue fund for the insurance sector and which is under the direct control of the Ministry of Finance of China.
The other state run company is China Petrochemical Corp which will be auctioning off its 0.55 per cent stake in Dajia for 186.9 million yuan, according to an auction statement filed to the Beijing Financial Assets Exchange.
The auction will end by August 12.
According to analysts, this is the latest development taking place in the process of restructuring and divestiture of Anbang. The company has apparently seems to have stalled since February 2020 soon after the apex banking and insurance watchdog of the country said that Dajia "was close to a decision on a batch of strategic investors" and "would remain privately owned".
Complete control over the Anbang Insurance Group was taken over by the Chinese government in February 2018. That move was a part of the plans of the Chinese government to make sweeping changes in order to reduce systemic financial risk in the economy following a handful of private sector conglomerates got engaged in an asset purchasing spree.
In 2020, the Chinese government completed running Anbang and handed over the company’s management to Dajia, which was a newly created business entity that was made to take over the assets of Anbang.
The value of the total assets currently owned by Dajia stands at 21.1 billion yuan while the value of its total liabilities is at 584.6 million yuan, said reports based on the information presented in the regulatory filing. The document also showed that a net profit of 2.9 billion yuan was posted by the company in 2020.
(Source:www.dailyadvent.com)
All of its 98.23% stake in Dajia for 33.38 billion yuan, is planned to be auctioned off by one of the state insurers, China Insurance Security Fund Co Ltd, which has come to be known as the state rescue fund for the insurance sector and which is under the direct control of the Ministry of Finance of China.
The other state run company is China Petrochemical Corp which will be auctioning off its 0.55 per cent stake in Dajia for 186.9 million yuan, according to an auction statement filed to the Beijing Financial Assets Exchange.
The auction will end by August 12.
According to analysts, this is the latest development taking place in the process of restructuring and divestiture of Anbang. The company has apparently seems to have stalled since February 2020 soon after the apex banking and insurance watchdog of the country said that Dajia "was close to a decision on a batch of strategic investors" and "would remain privately owned".
Complete control over the Anbang Insurance Group was taken over by the Chinese government in February 2018. That move was a part of the plans of the Chinese government to make sweeping changes in order to reduce systemic financial risk in the economy following a handful of private sector conglomerates got engaged in an asset purchasing spree.
In 2020, the Chinese government completed running Anbang and handed over the company’s management to Dajia, which was a newly created business entity that was made to take over the assets of Anbang.
The value of the total assets currently owned by Dajia stands at 21.1 billion yuan while the value of its total liabilities is at 584.6 million yuan, said reports based on the information presented in the regulatory filing. The document also showed that a net profit of 2.9 billion yuan was posted by the company in 2020.
(Source:www.dailyadvent.com)