China Post Life Seeks $2.2 Billion in Stake Sale

(Bloomberg) -- The life insurance arm of China Post Group Co. is seeking to raise about 15 billion yuan ($2.2 billion) from investors to broaden the state-backed firm’s ownership, people with knowledge of the matter said.

China Post Life Insurance Co. is working with advisers on the stake sale and has approached potential suitors, the people said, asking not to be identified as the matter is private.

The company is seeking a valuation of no less than its book value, the people said. China Post Life had assets of 192.4 billion yuan as of the end of 2019, according to its annual report.

China is encouraging state-owned companies to introduce private investors in so-called mixed ownership reform, in order to enhance their efficiency and competitiveness. China Post Group vowed in October to speed up mixed ownership reform of subsidiaries including China Post Life.

Discussions with potential investors are ongoing and the fundraising plan could still change, the people said.

Calls and emails to China Post Life and China Post seeking comment were not returned.

China Post Life was founded in 2009 and is based in Beijing, according to its website. It is one of China Post’s financial services units, which also include the Postal Savings Bank of China Co. and China Post Securities. China Post Life posted net income of 1.7 billion yuan in 2019, according to its annual report.

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With assistance from Bloomberg