HSBC sells insurance stake for US$9.4b
HBSC says it is selling its 15.6 per cent stake in China's Ping An Insurance to a Thai conglomerate for about US$9.4 billion ($11.4 billion).
HSBC said on Wednesday in a statement to Hong Kong's stock exchange that Thailand's Charoen Pokphand Group will pay HK$59 a share.
The sale is part of a broader push by Europe's biggest bank to improve its profitability as lenders worldwide struggle with weak economic growth and stricter regulation following the global financial crisis. Its three-year restructuring plan involves selling or closing weak businesses.
For Charoen Pokphand, the acquisition is a big expansion into financial services. Its businesses include agriculture, ready-to-heat meals, motorcycle manufacturing and property development.
Ping An is based in the southern Chinese boom town of Shenzhen, which neighbours Hong Kong.