October 1, 2018 – OCBC Bank today announced it has terminated the sale of its 33.33 per cent stake in Hong Kong Life Insurance Limited, saying the closing conditions had not been satisfied by the long stop date of September 30th.
In accordance with the terms of the share sale agreement, the buyer, First Origin International Limited, has forfeited its deposit of HK$710 million (S$124 million) to the seller, OCBC’s subsidiary OCBC Wing Hang Bank Limited (OWHB).
OWHB first announced in March 2017 that it would sell its 140 million ordinary shares in Hong Kong Life for HK$2.4 billion (S$419 million) to First Origin International.
Following the sale, Hong Kong Life would have ceased to be an associated company of OWHB and OCBC Bank, and OWHB would enter into a distribution agreement to distribute Hong Kong Life’s products in Hong Kong.
Since the sale has been terminated, OWHB will retain its stake in Hong Kong Life.