China

Jack Ma’s Yunfeng Financial Plans to Acquire 60% of Massachusetts Mutual Life Insurance’s Asian Unit

Summary:

  • Yunfeng Financial Group Ltd (0376.HK) recently announced that it plans to work together with several parties to acquire part of Massachusetts Mutual Life Insurance Co.’s Asian unit, as reported by Sina Finance.
  • The total price will be HK$ 13.1 billion. Of this amount, HK$ 7.9 billion will be paid in cash and Yunfeng will pay the remaining HK$ 5.2 billion by issuing 800 million shares to Massachusetts Mutual Life Insurance.

Why It Matters:

  • Yunfeng Financial is controlled by Alibaba Group’s (BABA.NYSE) Chairman Jack Ma. After the deal, Yunfeng Financial will hold a 60% stake in Massachusetts Mutual Life Insurance’ Asian unit and Massachusetts Mutual Life Insurance will hold a 24.8% stake in Yunfeng Financial.
  • Other investors include Ant Financial, the online finance arm of Alibaba Group, and Sina Corp. (SINA.NASDAQ), with each holding a 5% stake in Massachusetts Mutual Life Insurance’s Asian unit after the deal.
  • Founded in 1851, Massachusetts Mutual Life Insurance Company is an American mutual life insurance company serving 5 million clients. Its Asian unit mainly operates insurance businesses and Hong Kong’s pension business through two subsidiaries.