Khazanah and other ACR shareholders agree to stake sale terms

12th Khazanah Annual Review 2015 brochure

SINGAPORE: Singapore reinsurer, ACR Capital Holdings Pte Ltd, on Wednesday announced that its major shareholders, including Khazanah Nasional Bhd, have agreed to the terms for the 100% acquisition of ACR by Shenzhen Qianhai Financial Holdings Co Ltd (QFH) and Shenzhen Investment Holdings Co Ltd (SIHC).

ACR did not disclose the purchase price but it was reported that the deal was worth S$1bil (RM3.03bil).

Its other major shareholders are 3i Group plc (and affiliates), Temasek Holdings (Pte) Ltd and Marubeni Corp.

The acquisition of ACR is through QFH and SIHC’s jointly-owned holding company, Asia Investment Capital Holdings Co Ltd (AICH).

ACR’s shareholders will, subject to receiving regulatory and other approvals, enter into a definitive agreement with AICH.

Both QFH and SIHC are 100% state-owned investment corporations of Shenzhen, China.

With significant investment in the financial sector, the two firms are looking in particular to further boost their exposure to the reinsurance industry.

“China is ACR’s largest market and given QFH and SIHC’s strong focus on driving the development of China’s financial services sector, in particular, on developing Shenzhen Qianhai into a regional reinsurance hub, this new partnership presents ACR with great opportunities to contribute to the development of China’s reinsurance industry,” ACR’s group chief executive, Hans-Peter Gerhardt, said in a statement.

“Furthermore, they share ACR’s regional growth ambitions and have the ability to support ACR’s future growth trajectory. 

“A larger, stronger ACR will be well-positioned to pursue profitable growth opportunities, with an enhanced ability to serve its clients with a broader suite of products across a wider range of channels and geographies.”
 
He said the introduction of QFH and SIHC as long-term, strategic owners would open up a new and exciting chapter for ACR.

Meanwhile, QFH chairman Li Qiang said QFH would utilise ACR’s platform and professional advantages, consolidating global insurance capital or resources and developing professional insurance products and services, to provide comprehensive risk management solutions for the ‘Going Global’ Chinese firms.

“We look forward to using ACR’s leading pan-Asian platform and professional underwriting capacity to promote other domestic/overseas reinsurance business and the joint development of financial services. 

“At the same time, we would promote business synergy between ACR and Qianhai Re to achieve cohesive development of the two companies,” Li said.

The parties expect to proceed expeditiously towards completion following the execution of definitive transaction agreements, subject to the receipt of all required regulatory and other approvals as well as the satisfaction of other customary closing conditions. 

SIHC’s chairman, Peng Haibin, said the partnership would take ACR’s penetration of the Chinese market to the next level. 

“In turn, the Chinese reinsurance sector will benefit from ACR’s unique DNA mix of Asian roots and experience with international exposure and expertise.” - Bernama