Jack Ma-backed Yunfeng leads $1.7 bln purchase of MassMutual Asia unit (updated)

Yunfeng Financial

18/08/2017 03:23

* Yunfeng to own 60 pct of MassMutual's Asia unit 
    * Other investors include Ant, GIC-affiliate City-Scape 
 
 (Recasts with details of the deal, Yunfeng share price surge) 
    HONG KONG, Aug 18 (Reuters) - Yunfeng Financial Group 
 0376.HK , backed by Alibaba founder Jack Ma, said it would be 
the main investor in a $1.7 billion acquisition of U.S.-based 
insurer MassMutual International's Asia unit - a deal that sent 
Yunfeng's shares surging more than 20 percent. 
    Yunfeng will own 60 percent of MassMutual Asia, while 
investors including Alibaba Group  BABA.N  affiliate Ant 
Financial Services and Singapore sovereign wealth fund 
GIC-managed City-Scape Pte will own the rest. 
    "This transaction is a milestone step of Yunfeng FG becoming 
a financial conglomerate, integrating its existing fintech 
focused financial services with traditional insurance business," 
said Yu Feng, chairman of Yunfeng. 
    Yunfeng will pay MassMutual $1 billion in cash and 800 
million shares valued at HK$6.50 apiece, the companies said in a 
statement late on Thursday. 
    Yunfeng's shares were 22 percent higher at HK$7.73 in early 
trade after soaring as much as 30 percent. 
    MassMutual Asia has two main units - one manages general 
insurance business, while the other focuses on the Mandatory 
Provident Fund business, a compulsory pension plan for the 
retirement of residents in Hong Kong. 
    Reorient Financial Markets, a wholly-owned unit of Yunfeng 
and JPMorgan acted as Yunfeng's financial advisors on the deal, 
while Citigroup advised MassMutual International, the statement 
said. 
    ($1 = 7.8232 Hong Kong dollars) 
 
 (Reporting by Sumeet Chatterjee in Hong Kong; Additional 
reporting by Aparajita Saxena in Bengaluru; Editing by Edwina 
Gibbs) 
 ((Aparajita.Saxena@thomsonreuters.com; within U.S. +1 646 223 
8780, outside U.S. +91 806 749 8901; Reuters Messaging: 
aparajita.saxena.thomsonreuters.com@reuters.net)) 
 
Keywords: MASSMUTUAL M&A/YUNFENG FIN