Anbang Insurance Group continues to unwind its holdings with the latest sale in the stake of a dozen rural commercial banks.
The largest transaction is the sale of its direct and indirect stake in Chengdu Rural Commercial Bank as it seeks 26.2 billion yuan ($3.8 billion) for 5.5 billion shares, according to an «SCMP» report citing filings from the Beijing Financial Assets Exchange. The direct 35 percent Anbang-owned stake sale is valued at $2.41 billion, slightly lower than its previous attempted target of $2.37 billion in December 2018.
Beijing-based Anbang and its affiliates are also seeking to sell stakes in 11 the rural banks for a total of $12.2 million, according to a separate filing.
Continued Unwinding
The sale marks another move towards unwinding Anbang’s holdings after the once quenchless asset buyer was sized in February 2018 and its chairman Wu Xiaohui was subsequently sentenced to 18 years of prison for fundraising fraud and embezzlement. Anbang assets sold ranged from luxury hotels in the U.S., Canada-based office buildings to a South Korean life insurer.
The China Bank and Insurance Regulatory Commission (CBIRC), which has been acting as Anbang’s custodian, said in July that risks in the firm had been curbed with more than $140 billion worth of assets being or having been stripped away.
Dajia
Following state seizure of Anbang, the restructuring involved the creation of a new insurance group to take over the core insurance operation. The new Beijing-based entity, Dajia Insurance Group, acquired the stakes of Anbang Life Insurance, Anbang Annuity Insurance, and Anbang Asset Management, as well as some assets of Anbang Property & Casualty Insurance.
Chinese authorities are planning to return the entity to private ownership after a two-year takeover period for restructuring purposes. Beijing is reportedly seeking to sell all or part of its 98 percent stake in Dajia, according to a «Financial Times» report (behind paywall) citing two unnamed sources, with «Bloomberg» previously reporting interest from the likes of Cerberus Capital Management LP, Swiss Re AG, and Temasek Holdings.
