Ping An Insurance Group Co. is considering a sale of Founder Group’s life insurance business, people familiar with the matter said, in what would be the first disposal after the latter’s court-led restructuring.
The Chinese insurance giant is working with financial advisers on the potential sale, which could value Founder’s life insurance unit at as much as $1 billion, the people said, asking not to be identified because the matter is private. Other insurers and investment funds have shown preliminary interest in acquiring the business, the people said.
Considerations are at an early stage and no final decision has been made, the people said. A representative for Ping An had no comment on the matter.
The new company was created following the restructuring of Peking University Founder Group Corp., the troubled business arm of a top Chinese university. Its assets include Founder Securities Co., Founder Technology Group Corp. and China Hi-Tech Group Co.
In July, a Chinese court approved a restructuring plan in which a consortium including Ping An and Zhuhai Huafa Group Co. agreed to invest 53.7 billion yuan ($8.3 billion) to 73.3 billion yuan into the company. Earlier this year Ping An said it would
--With assistance from Bei Hu.
