Oversea-Chinese Banking Corp (OCBC) has revealed that the planned sale of Hong Kong Life Insurance has been cancelled.
The Singapore-headquartered lender said that the would-be buyer, investment firm First Origin, was unable to meet certain conditions before the September 30 deadline expired, according to a report by Reuters.
OCBC, through its Hong Kong subsidiary OWHB, owns one-third of Hong Kong Life Insurance, with the rest owned by four other investors, including Chong Hing Insurance, a unit of Chong Hing Bank. Hong Kong Life Insurance is one of the few remaining independent life insurers in Hong Kong.
In March 2017, First Origin agreed to buy the insurer for HK$7.1 billion (US$907 million), in what appeared to be a done deal.
“OWHB together with the other sellers have terminated the sale ... on the basis that the closing conditions have not been satisfied,” OCBC said in a statement, but it did not specify which conditions First Origin failed to fulfil.
With the cancellation of the transaction, which was awaiting approval from Hong Kong regulators, First Origin forfeited a deposit worth HK$710 million, or 10% of the agreed-upon value.
