HONG KONG: Yunfeng Financial Group, backed by Alibaba founder Jack Ma, said it would be the main investor in a US$1.7 billion acquisition of US-based insurer MassMutual International’s Asia unit - a deal that sent Yunfeng shares surging more than 20%.
Yunfeng will own 60% of MassMutual Asia, while investors including Alibaba Group affiliate Ant Financial Services and Singapore sovereign wealth fund GIC-managed City-Scape Pte will own the rest.
“This transaction is a milestone step of Yunfeng FG becoming a financial conglomerate, integrating its existing fintech-focused financial services with traditional insurance business,” said Yunfeng chairman Yu Feng.
Yunfeng will pay MassMutual US$1 billion in cash and 800 million shares valued at HK$6.50 apiece, the companies said in a statement late on Thursday.
Yunfeng shares were 22% higher at HK$7.73 in early trade after soaring as much as 30%.
MassMutual Asia has two main units - one manages general insurance business, while the other focuses on the Mandatory Provident Fund business, a compulsory pension plan for the retirement of residents in Hong Kong.
Reorient Financial Markets, a wholly-owned unit of Yunfeng and JPMorgan acted as Yunfeng’s financial advisers on the deal, while Citigroup advised MassMutual International, the statement said. - Reuters
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