MassMutual Strikes $1.7B Deal to Sell Asian Unit to Jack Ma-backed Firm
August 18, 2017 by Greg Shulas
MassMutual International is planning to sell its Asia unit to a business group backed by Alibaba founder Jack Ma for roughly $1.7 billion, according to Reuters. But the Springfield, Mass.-based insurer will remain committed to the Asian market through the entity created from the transaction, signaling that the deal likely represents a new way of approaching this market.
Ma-backed Yunfeng Financial Group would be the primary investor in the spun-out Hong Kong-based MassMutual Asia, establishing a 60% stake, Reuters reports. Other participants in the deal include a direct Alibaba affiliate, Ante Financial Services, and a private equity group overseen by Singapore’s sovereign wealth fund, City-Scape Pte, among others.
MassMutual would receive $1 billion in cash and 800 million shares that were valued at HK$6.50 apiece from Yunfeng at the deal’s conclusion, according to Reuters. MassMutual’s CEO, Roger Crandall, says in a statement that the sale would enable the insurer to “capitalize on the long term success and value of MassMutual Asia” and symbolizes a “significant step forward for MassMutual and its policyowners.”
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