Fallen Chinese financial giant Anbang Insurance Group will probably transfer its shares in a bank based in the southwestern city of Chengdu to an investment firm owned by the city government, Caixin has learned.
China’s insurance regulator has been selling off Anbang’s assets since it took over the debt-ridden conglomerate in February last year. Anbang founder Wu Xiaohui has been sentenced to 18 years in prison for fundraising fraud and embezzlement.
Anbang is expected to sell a 35% stake in Chengdu Rural Commercial Bank to Chengdu Xingcheng Investment Group, an investment vehicle of the local government, according to sources familiar with the matter. The deal is likely to be announced before the end of the year.
In December last year, Anbang put its 3.5 billion shares in the bank up for sale for 16.8 billion yuan ($2.4 billion). But the sale was terminated in January, likely because potential buyers could not agree with Anbang on the price.
Read the full story on Caixin Global later today.
Contact reporter Guo Yingzhe (email@example.com)