GIC joins Jack Ma’s group in buying MassMutual Asia
GIC, together with several Asia-based investors, has agreed to acquire Hong Kong-based MassMutual Asia from Massachusetts Mutual Life Insurance Company.
The investor group is led by Yunfeng Financial Group, the financial services company backed by Alibaba founder Jack Ma.
The buyers will pay HK$13 billion (Bt55 billion), with about 60 per cent, or about US$1.01 billion, in cash and the rest in Yunfeng stock. In turn, Yunfeng will take a direct 60-per-cent interest in MassMutual Asia, while GIC will hold a 7.5-per-cent stake.
The remaining investors comprise Ant Financial (5 per cent), Sina (5 per cent), Giant Interactive (2.8 per cent), Meyu International (9.8 per cent), Harvest Billion International (4.9 per cent) and Sheen Light Development (5 per cent).
GIC believes MassMutual Asia will continue to enjoy the consistent growth of Hong Kong’s life insurance industry, it said in a statement yesterday. The acquisition is at a very reasonable valuation and there could be significant value-creation through strategic collaboration among MassMutual Asia, Yunfeng Financial and Ant Financial, GIC added.
MassMutual, founded in 1851, has been reshaping its business mix under chief executive officer Roger Crandall, the South China Morning Post said yesterday.
The company has been seeking to expand in asset management and added a network of thousands of advisers in a deal last year with MetLife, SCMP said.