Singapore's OCBC says sale of Hong Kong Life Insurance cancelled

OCBC earned S$921mil (US$739mil) in the three months ending in June, compared with S$597mil a year earlier - AFP Photo.

SINGAPORE: Singapore's OCBC Bank said on Monday that a planned sale of Hong Kong Life Insurance to investment firm First Origin had been called off after the buyer failed to meet certain conditions before a Sept. 30 deadline.

OCBC, via a subsidiary OWHB in Hong Kong, owns a third of the insurer - one of the last remaining independent life insurance businesses in Hong Kong. OWHB is one of five owners including Chong Hing Insurance Co Ltd, a unit of Chong Hing Bank Ltd.

First Origin International Ltd agreed to acquire the business in March last year for HK$7.1 billion ($907 million), according to two of the sellers.

"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. It did not specify which conditions were not met.

First Origin International Limited forfeited a deposit of HK$710 million ($90.7 million) to the sellers, OCBC said.

Reuters was not able to contact First Origin for comment on Monday, a public holiday in Hong Kong. 

The deal had been awaiting approval from the Hong Kong regulator. - Reuters