Ping An Insurance (2318) is considering a sale of Founder Group's life insurance business, valuing the unit at US$1 billion (HK$7.8 billion), people familiar with the matter said
The Chinese insurance giant is working with financial advisers on the potential sale. Other insurers and investment funds have shown preliminary interest in acquiring the business, the people said.
Considerations are at an early stage and no final decision has been made, the people added. A representative of Ping An had no comment to make.
It would be the first disposal after the Founder Group's court-led restructuring.
The new company was created following the restructuring of Peking University Founder Group, the troubled business arm of the top Chinese university. Its assets include Founder Securities, Founder Technology Group, China Hi-Tech Group and Hong Kong-listed Founder Holdings (0418) and Peking University Resources (0618).
In July, a Chinese court approved a restructuring plan in which a consortium including Ping An and real estate developer Zhuhai Huafa Group agreed to invest 53.7 billion yuan (HK$64.9 billion) to 73.3 billion yuan in the company.
Earlier this year, Ping An said it would buy a 51.1 percent to 70 percent stake in Founder Group for as much as 50.75 billion yuan.
The disposal would be the first after Founder Group's restructure. REUTERS
