ping-an-buys-42-stake-in-fortis

Ping An buys 4.2% stake in Fortis

The Chinese insurer pays $2.65 billion to become the largest shareholder in Fortis in a deal which both parties are calling highly synergistic.

By Sameera Anand

November 30, 2007

China's Ping An Insurance will pay Ç1.8 billion $2.65 billion for a 4.2% stake in Belgian-Dutch financial services firm Fortis.

The deal is the latest in a series of cross-border investments by Chinese financial services companies. Shenzhen-headquartered Ping An Insurance is making the investment with policyholders' funds, making it a portfolio investment for the firm. It has already received all the necessary approvals for the deal.

ôFortis has been seeking to induct a large shareholder but was keen that the investor be strategic in nature,ö explains a source close to the deal.

Ping An purchased the shares via the open market, paying an average of Ç19.05 per share. The price translates to 7.7 times forecast...

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