OCBC sells stakes in Hong Kong Life Insurance

The divestment could yield $426m.

Singapore banking giant OCBC agreed to divest its 33.3% stake in Hong Kong Life Insurance to First Origin International.

According to UOB Kay Hian, the transaction resulted in a return of around $426m.

Meanwhile, the bank and its subsidiary Great Eastern announced that they are conducting a strategic review and have received proposals from several parties regarding their combined stakes in United Engineers (UE) and WBL Corporation (WBL).

These proposals are being evaluated but there is no certainty that any transaction would materialise. OCBC and Great Eastern own 26.2m (4.1% stake) and 80.2m (12.6% stake) UE shares respectively.

"Proceeds from these divestments would be re-invested into its core wealth management business and high-growth emerging markets, such as Indonesia and China," UOB Kay Hian analyst Jonathan Koh noted.