Freshfields Bruckhaus Deringer and Allen & Overy have advised in the $2.14 billion cash sale of ING’s insurance business units in Hong Kong and Macau, and its Thailand life insurance operation to Pacific Century Group (PCG).
PCG is a private firm founded by Hong Kong businessman, Richard Li, the chairman of Hong Kong’s largest telecom operator HKT and younger son of Li Ka-shing, Asia’s richest man. PCG bought ING’s life insurance, general insurance, pension and financial planning units in Hong Kong and Macau. The deal is subject to regulatory approval, and expected to close in the first quarter of 2013.
The multijurisdictional Freshfields team that advised PCG was led by corporate partner Heiner Braun and Royce Miller, and included partners Teresa Ko, Robert ten Have and Kathleen Healy.
ING was represented by a global A&O team that included Hong Kong partner Gary McLean, Amsterdam partner Charles Honee, London partner Richard Evans and London insurance head Philip Jarvis.
According to Reuters, Li’s bid – through unlisted PCG - marks his return to an industry he exited in 2007, and would help expand his business empire, which is now made up of telecoms, media and funds management. He is paying 24.3 times estimated 2012 earnings for the three units.
"What we really want to do is to expand the business regionally," Li told Reuters. A source familiar with the sale process said that Li is interested in other insurance acquisitions and distribution agreements in Asia-Pacific.
Last week, ING announced the sale of its Malaysian insurance business to AIA Group Ltd for $1.73 billion in cash, helping it to strike its first deal in a nine-month drive to sell its Asian insurance and investment management assets. In this transaction, a Hong Kong Debevoise & Plimpton team led by Drew Dutton represented AIA, and Malaysian firm Wong & Partners also advised.
With the PCG latest deal, ING would be raising a total of $3.87 billion so far from its Asia exit plan, with the divestment of its much bigger Japan, and South Korean operations still pending.
Candice Mak is North Asia Editor at ALB. Follow us on Twitter: @ALB_Magazine.
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