A group linked to Thailand's richest man, Dhanin Chearavanont, has bought global bank HSBC's entire stake in China's Ping An Insurance for $9.38 billion, with China Development Bank backing Asia's second-largest deal this year, Reuters reported.
HSBC said on Wednesday it had sold the 15.6 percent stake to an affiliate of Charoen Pokphand Group, a group controlled by Chearavanont which is better known for its agri-business empire than writing insurance policies.
"This is phenomenal for HSBC shareholders because the bank is now sitting on at least $8 billion in profit," said Jim Antos, an analyst at Mizuho Securities in Hong Kong.
"I'm not sure what CP Group would do with the stake though. I was joking earlier that every Ping An shareholder will now get a bucket of fried chicken for their insurance policy."
CP Group, whose products include feed for chickens and pigs, has a long history in China.
Chearavanont – worth $7.4 billion according to Forbes magazine – also appears to have strong political connections in Beijing. State-run China Development Bank is helping to finance CP Group's Ping An stake acquisition, according to HSBC.
The bank said in a statement that the sale would complete in stages, with about a fifth of the stake to be transferred to the Thai buyer on December 7. The remainder is still subject to approval by the China Insurance Regulatory Commission.
