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China Minsheng Investment to acquire Sirius for $2.2b

  • Holden Mann
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Bermuda-based White Mountains Insurance Group has agreed to sell its subsidiary Sirius International Insurance Group to China Mingsheng Investment (CMI) for $2.2 billion.

CMI will pay cash representing 127% of Sirius' current shareholder equity, plus $10 million, according to a regulatory filing. The firm will acquire all the shares in the company through its subsidiary CM Bermuda. The deal will close within six months, subject to regulatory approval.

In a statement, Sirius CEO Allan Waters said: "CMI is strongly capitalized and intends to further grow Sirius's already substantial capital base. China is one of Sirius's most important markets, and CMI is the perfect partner for Sirius to continue its Asian growth strategy."

CMI, based in Shanghai, was founded in May 2014 by the former head of China Minsheng Banking Corporation. It aims to become a global financial holding company through strategic investments in financial services and upgrading industrial businesses. The firm launched a RMB50 billion ($8 billion) investment fund in August 2014.

CMI's intended focus is private equity, with an emphasis on helping consolidation of domestic companies in industries such as steel, power generation and shipbuilding. Earlier this year CMI led a $5 billion investment in an Indonesian industrial park, with more than 20 Chinese enterprises participating.

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