By Saurabh Chaturvedi
SINGAPORE--Units of Oversea-Chinese Banking Corp. (O39.SG), Chong Hing Bank Ltd.(>> Chong Hing Bank Ltd), The Shanghai Commercial & Savings Bank Ltd, Asia Financial Holdings Ltd. (>> Asia Financial Holdings Limited) and Wing Lung Bank Ltd. have entered into an agreement to collectively sell their stakes in Hong Kong Life Insurance Ltd. to First Origin International Ltd. for a total of 7.10 billion Hong Kong dollars. (US$914 million).
OCBC Wing Hang Bank Ltd, Chong Hing Insurance, Shanghai Commercial Bank Ltd, Asia Insurance Co. and Wing Lung Agency will receive amounts in proportion to their stake in the insurance company, Chong Hing Bank said in a late-Monday filing to the stock exchange.
Chong Hing Bank will get HK$1.18 billion from its stake sale while OCBC unit will get HK$2.36 billion.
"Sellers believe that it is in the best interests of Hong Kong Life to have one new single shareholder to take charge to grow its business in line with its customers' evolving needs," Chong Hing Bank said.
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