Philippine National Bank seeks US$500m in sale of life insurance stakeApril 23 2015 by InsuranceAsia News Staff
Philippine National Bank (PNB), the fifth biggest bank by assets in the Philippines, is selling a stake of 40% or more in Philippine Life Insurance in a deal that could fetch as much as US$500m.
PNB, controlled by billionaire Lucio Tan, is working with HSBC Holdings Plc on the plan.
PNB Life Insurance Inc is one of the few Philippine insurers that do not have a foreign partner and PNB is considering selling the stake to a foreign investor, said President Reynaldo Maclang.
Sources said possible investors in the insurer could come from Japan and Taiwan, which have been looking for ways to enter the Philippine financial sector.
The winning bidder could eventually sign a bancassurance deal that will give it exclusive rights to distribute its products via PNB’s 657 branches. PNB first acquired a minority stake in the life insurer in 2009 and now holds about an 80% stake.
The remaining 20% is owned by other investors, with 10% owned by Tan, one of the richest people in the Philippines.
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