Temasek, 3i to exit ACR Capital to Chinese consortium

Financial details of the transaction have not been disclosed, though media reports have put the valuation at about $1 billion, and 3i said in a statement that it expects to see proceeds of about GBP182 million ($232 million). According to AVCJ Research, 3i invested $200 million in ACR at the time of the company's founding in 2006. It was part of a group, alongside Khazanah and others, that committed $620 million in all. Temasek invested S$200 million (then $157 million) in 2011.

QFH and SIHC will purchase 100% of ACR through Asia Investment Capital Holdings, their jointly-owned holding company. The deal is expected to close by early 2017, subject to regulatory approvals.

ACR is the holding company for Asia Capital Reinsurance Group, Asia's first reinsurance company, which specializes in providing solutions for large and complex risks across non-life business lines.

QFH and SIHC beat out several other Chinese firms including Fosun Group and Foresea Life Insurance for the company; they plan to take advantage of ACR's experience and global network to advance their own businesses. QFH recently established Qianhai Reinsurance Company, while SIHC is a shareholder in a number of prominent Chinese insurers such as Ping An Insurance, Gusen Securities and Guotai Junan Securities.

"On the one hand, QFH will utilize ACR's platform and professional advantages to provide comprehensive risk management solutions for ‘going global' Chinese enterprises," QFH Chairman Li Qiang said in a statement. "On the other hand, we will open up the Qianhai-Asia-International insurance industry chain to form a strong agglomeration and demonstration effect, and make Qianhai the national center for reinsurance."

Both QFH and SIHC are backed by the Shenzhen government. QFH partnered with China International Capital Corporation in 2014 to launch the CICC Qianhai Development Fund, which invests in high-growth companies and supports cross-border transactions in financial services, logistics, and information technology. SIHC contributed to a VC fund launched earlier this year by China Reform Holdings Corporation, joining other backers to commit RMB100 billion in total.

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• Topics
• Greater China
• Southeast Asia
• Buyouts
• Trade sale
• Financials
• China
• Singapore
• 3i Asia Pacific
• Temasek Holdings
• Khazanah Nasional
• Financial Services
• insurance