Hong Kong-based insurance giant AIA is rumoured to have bid for the life insurance operation of Bank of East Asia (BEA).
There a number of firms interested in the business, according to newswire Bloomberg.
Speculation that the sale of the life insurance unit could raise between $500m to $600m (£437m, €495m).
China Strategic, an investment company backed by billionaire Henry Cheng, is also keen on the operation.
In a Hong Kong stock exchange filing on 2 February 2020, China Strategic said: “The company notes from recent news report that the company has been named as one of the final bidders for the Bank of East Asia’s life insurance unit (BEA Life).
“The company wishes to clarify that […] the group has been selected as one of the shortlisted bidders to enter phase two of such bidding process for BEA Life and the group has submitted an offer in phase two subject to further due diligence and entering into legally binding agreements.
“As at the date of this announcement, the bidding process for BEA Life is still ongoing. The company may or may not win the bid for BEA Life and, even if it wins such bid, the potential transaction will still be subject to conditions including, among others, approval from shareholders of the company being obtained.
“As such, there is no certainty that the potential transaction will proceed. Further announcement will be made as and when there is further material development of this matter.”
International Adviser contacted AIA but did not receive a comment in time for publication.