Mutual Life Insurance has reached an agreement with a group of Asian investors including Yunfeng Financial Group, the company backed by Alibaba billionaire Jack Ma, to divest its Hong Kong-based operations for about $1.7bn.
Under the terms of the cash-and-stock deal, MassMutual International will receive nearly $1.01bn in cash and 800 million shares of Yunfeng valued at about $668m.
The deal will enable Yunfeng FG to own a direct 60% stake in MassMutual Asia, while remaining 40% interest will be owned by other investors, including Meyu International Company (9.8%), City-Scape (7.5%), Ant Financial Services Group (5%), Sheen Light Development (5%), SINA Corporation (5%), Harvest Billion International (4.9%) and Giant Investment (HK) (2.8%).
The proposed acquisition will enable Yunfeng Financial Group to add offerings such as death benefits and annuities under its product list.
Yunfeng Financial Group chairman Yu Feng said: “MassMutual Asia’s insurance products will broaden Yunfeng FG’s financial product offerings and significantly contribute to the building of its financial service ecosystem, given that insurance and annuity products are indispensable in overall financial planning.
“MassMutual Asia’s strong distribution capability, featured by its well-trained tied-agent force, will enable the enlarged group to combine with Yunfeng FG’s existing team of software engineers to enhance customer experience and further strengthen its online to offline (O2O) capabilities.
“This transaction will also enable cross-referrals of existing customers of Yunfeng FG and MassMutual Asia, thereby facilitating a wider customer reach for the enlarged group.”