Companies

China's Ping An, CIC eye stakes in AIA

(Agencies)
Updated: 2010-10-18 10:13

Sovereign wealth fund China Investment Corp (CIC) and Ping An Insurance Co of China are among big Chinese institutional investors eyeing significant stakes in AIA Group, the FT reported, citing people working on the deal.

AIA, the Asian life insurance unit of bailed out insurer American International Group, will be listed in Hong Kong through an initial public offering to raise up to $20.5 billion.

The IPO is scheduled to be priced on Thursday.

China Life, the world's biggest life insurer by assets, and Taikang, another Chinese life company, are also lining up for stakes in the IPO alongside other significant regional life insurers including the Asian arm of Britain's Prudential, the FT reported, citing one person involved in the deal.

Related readings:  AIG Asia unit float in HK aims to raise $15b  China Life not keen on AIA stake buy  Prudential gives up on $35.5b AIA deal  CIC gets Fed nod for Morgan stake

CIC is interested in taking a stake of about $250 million, according to the report.

Underwriters had tried to woo CIC, China Life and others into the deal as cornerstone investors, which have to commit to hold shares for at least six months in return for receiving a guaranteed allocation.

But because of the size of the deal and the fact that cornerstone investors would not get a discount on the price, CIC decided there was little advantage in coming in early, bankers said in the FT report.

The FT said that CIC could not be reached for a comment.