China Life Insurance Co. Ltd. (02628.HK), the country’s biggest insurer, plans to buy a stake in Postal Savings Bank of China for 13 billion yuan (US$2 billion), the company said in a stock exchange filing.
The insurer said it will subscribe to 3.3 billion of the bank’s subscription shares, giving it “no more than 5 percent” in the enlarged share capital of China’s largest unlisted commercial lender, the Wall Street Journal reported.
Postal Savings aims to raise US$10 billion in an initial public offering in Hong Kong next year.
China Life said the deal would open its cooperation with the bank in personal finance, small and medium-scale companies financing and insurance, among other areas.
Postal Savings has about 40,000 branches across the nation.
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