JD Capital to acquire Ageas’ HK life insurance unit for $1.4b

The sale comes as Europe-headquartered Ageas refocuses its Asian business on faster-growing emerging markets in the region, notably Malaysia, China, Thailand, India, the Philippines and Vietnam. It purchased a 50.45% stake in the Hong Kong business - then known as Pacific Century Insurance - in 2007, taking paying HK$3.5 billion in cash. Ageas then bought up the remaining shares, taking the total acquisition value to around HK$6.94 billion.

The book value of the Hong Kong operations amounted to EUR967 million ($1.01 billion) as of June. The unit, which employs more than 2,500 professional financial advisors, posted gross inflows of EUR418 million in 2014, and EUR269 million in the first half of 2015.

Ageas said in a statement that its Asia regional office will continue to be based in Hong Kong.

JD Capital, formerly known as Jiuding Capital, was established in 2007 and rose to prominence in the renminbi fund space, primarily as a pre-IPO investor in Chinese companies. It had RMB31 billion ($4.86 billion) in private equity funds under management at the end of last year. JD closed its second US dollar fund at $200 million last September, with commitments from the likes of Temasek Holdings, Allianz Group, Allstate Insurance, Partners Group, and family office BMW.

The firm has also broadened its operations, seeking to establish a "mega asset management" framework comprising private equity, hedge funds and mutual funds. JD also now has a brokerage unit, a mutual fund management firm, an overseas asset management business, a peer-to-peer lending platform, and a payment processing division. There are plans to launch a commercial bank.

Last year, JD became the first Chinese PE firm to list on the country's emerging over-the-counter (OTC) platform - the National Equities Exchange and Quotation (NEEQ). It is thought to be seeking a listing on Shanghai's main board through a reverse merger, having acquired Jiangxi Zhong Jiang Real Estate.

The sale of Ageas' Hong Kong business is subject to regulatory approvals and approval from JD Capital's shareholders. It is expected to be completed in the first half of 2016.

• Tweet  
• Facebook  
• LinkedIn  
• Google plus  
• Save this article  
• Send to  

• Topics
• Buyouts
• Greater China
• Financials
• JD Capital
• Financial Services
• China
• Hong Kong (China)
• buyout