Bank looking for buyers for 18% stake in Bao Viet Holdings
HSBC Holdings is considering the sale of its Vietnam insurance business for about $400m as the bank looks to exit non-core global operations, according to a report in Reuters.
HSBC has been looking for buyers for its 18% stake in government-controlled Bao Viet Holdings, Vietnam’s top insurer, and is in talks with Japan’s Sumitomo Life over a potential deal.
“HSBC confirms that it is reviewing its strategic options with respect to its shareholding in Bao Viet Holdings. No decision has been made as yet and HSBC will make a further statement if or when appropriate,” the bank said in a statement.
The stake has a market value of $250 million, but HSBC is expecting a hefty premium due to Bao Viet’s market position and the potential to raise the ownership level at a later stage, according to sources.
HSBC has been pulling back from unprofitable markets and businesses as part of a three-year recovery plan. It has already sold 28 businesses, taken 15,000 staff of its payroll and released about $55 billion in risk-weighted assets under the plan.
The planned exit from Vietnam comes four months after it sold its global general insurance business to AXA SA and QBE Insurance Group Ltd for $914m.
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