HSBC sells $7.4 billion stake to Thai billionaire
HSBC Holdings' $7.4 billion sale of its stake in Ping An Insurance (Group) Co. to Thai billionaire Dhanin Chearavanont was cleared by regulators, ending six weeks of speculation over the deal's fate.
Dhanin's Charoen Pokphand Group Co. and HSBC said payment was made in cash after the China Insurance Regulatory Commission approved the sale of 976.1 million Hong Kong-traded shares in the nation's second-largest insurer. The transfer will take place by Wednesday, HSBC said in its statement.
The transaction will generate a $2.6 billion profit for London-based HSBC, bolstering chief executive officer Stuart Gulliver's efforts to revive earnings. CP Group said on Jan. 11 that it had the resources to complete the purchase, damping concern the deal would collapse after Caixin Online reported that China Development Bank Corp. withdrew financing.