OCBC Wing Hang Bank, a subsidiary of Singaporean bank OCBC, has scrapped its plan. Originally, it was to sell a 33.33% stake in Hong Kong Life Insurance to First Origin International.
The share sale agreement, which was pending regulatory approval, was first announced in March last year. The deal was also valued at HK$7.1bn ($906.9m).
However, the firm terminated the agreement, citing non-fulfilment of closing conditions.
“OWHB together with the other sellers have terminated the sale in accordance with the terms of the Share Sale Agreement on the basis that the closing conditions have not been satisfied by the Long Stop Date, being 30 September 2018,” OCBC said in a statement.
Not meant to be
The long stop date was earlier extended from 20 March 2018 to 30 September 2018. The parties did not disclose the precise conditions that led to the agreement’s termination or why the long stop date was not extended further.
On completion of the sale, OCBC would have inked a distribution agreement to distribute Hong Kong Life products in Hong Kong.
OCBC Wing Hang Bank will now retain its ownership in Hong Kong Life Insurance.
The aggregate deposit of HK$170m paid by First Origin International will be kept by the sellers.