OCBC terminates plan to sell stake in Hong Kong Life Insurance

OCBC branch in SingaporeOCBC branch in Singapore

Correction: This item has been updated to reflect that OCBC indicated the closing conditions were not met by the deadline.

OCBC said on Monday that it had terminated OCBC Wing Hang Bank’s deal to sell its 33.33 percent stake in Hong Kong Life Insurance to First Origin International as closing conditions were not satisfied before the deadline.

The deposit of HK$710 million (US$90.70 million or S$123.98 million) paid by First Origin International has been forfeited to the sellers and they will continue to own Hong Kong Life, it said in a filing to SGX before the market open on Monday.

The “long stop date” for the deal had been 30 September, it said on Monday, which had been extended from 20 March 2018.

The release didn’t provide details on what conditions weren’t met or why the long stop date hadn’t been extended further, with OCBC saying in March of 2018 that it could be extended as long as 24 months after the deal was announced in March 2017.

The full consideration agreed to in March of 2017 had been HK$2.37 billion, which was then around S$425.9 million, according to the March 2017 filing to SGX. After the completion of the deal, OCBC Wing Hang Bank had been expected to enter into a distribution agreement for Hong Kong Life products in Hong Kong, it had said.

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