GIC, Yunfeng Capital LPs in $1.7b Asian insurance acquisition

Other investors include Alibaba's financial service affiliate Ant Financial, Meyu International, Sina Corporation and Giant Network Group. Sheen Light Development and Harvest Billion International - both investment entities owned by entrepreneurs of A-share listed companies - also participated.

GIC, Sina, Sheen, Harvest and the founder of Giant are each investors in various funds managed by Yunfeng Capital, a private equity firm controlled by the owners of YFG. Yungfeng Capital is also a minority owner of Ant Financial.

According to a filing, the group will acquire 100% of MassMutual for about $1 billion in cash and about $670 million worth of YFG shares. YFG will control a 60% stake, while Meyu and GIC will take 9.8% and 7.5% holdings, respectively. Ant Financial, Sina and Sheen will each acquire a 5% stake.

MassMutual Asia is the regional unit of US-based Massachusetts Mutual Life Insurance. Its primary subsidiaries focus on general insurance and a compulsory pension plan for Hong Kong. It also operates in Japan and manages a joint venture in China, neither of which are part of the latest transaction.

As a result of the acquisition, MassMutual Asia is expected to be able to serve a wider range of customers, including high net worth individuals and an emerging set of Asian consumers with rising incomes. This will be achieved through greater access to Hong Kong and China-based business networks with a range of resources including big data and asset management services. YFG said it would keep the company’s existing management and staff intact.

"The long term vision of YFG is to leverage its fintech capabilities to develop a financial service ecosystem comprising information technology and online and offline platforms that offer a broad range of financial services and products, along with high quality expert advice,” David Yu, chairman of YFG, said in a statement. “This transaction is a milestone step toward YFG becoming a financial conglomerate, integrating its existing fintech focused financial services with traditional insurance business."

YFG is controlled by Yunfeng Financial Holdings, an investment vehicle owned 30% by Ma and 70% by Yu, who is also the founder of Target Media. Ma and Yu hold 40% and 60% stakes, respectively, in Yunfeng Capital, which manages a number of US dollar-denominated and renminbi funds. Its latest US dollar vehicle closed at $1.1 billion in 2014.

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• Topics
• Greater China
• Financials
• Buyouts
• China
• Hong Kong (China)
• GIC Private
• Yunfeng Capital
• Financial Services
• insurance