In the latest attempt by state controllers to dissolve the once-popular group led by the imprisoned tycoon Wu Xiaohui, the remains of China’s Anbang are worth more than US$5.2 billion.
Investors pay close attention to Beijing’s efforts to dissolve Anbang over the years. Amazing downfall As a test case to test how other collapsed groups that have burdened the state with billions of dollars in debt will be managed.
Wu Mou High-profile businessman He married the family of the late Chinese leader Deng Xiaoping, and transformed the local auto insurance company Anbang through global acquisitions, including the acquisition of the famous auto insurance company Anbang. Waldorf Astoria A hotel in New York City, the price is only nearly 2 billion US dollars.
The debt-laden group went bankrupt in 2018, when Wu was sentenced to 18 years in prison for fraud and embezzlement of public funds.This is one of a series of crashes Embarrass the Chinese government It also raises concerns about hidden corporate debt and instability in the country’s financial system.
Chinese state-owned investors controlling Anbang’s assets-renamed Dajia Insurance -According to documents submitted to the Beijing Financial Assets Exchange, they plan to sell their shares for US$5.19 billion.
According to the document, the China Insurance Protection Fund and Sinopec Corp., the insurance industry rescue fund under the Ministry of Finance, will auction nearly 99% of everyone’s shares, and the auction will end on August 12.
When Anbang was controlled by the state in 2018, the group had assets of RMB 2 trillion (US$320 billion). However, the documents show that everyone’s total assets are valued at 34.6 billion yuan (US$5.34 billion) and liabilities are 584.6 million yuan (US$90 million). Everyone announced a net profit of 2.9 billion yuan ($448 million) in 2020.
This auction only applies to bids from consortiums. According to people close to Chinese regulators, Beijing wants everyone to operate under a diversified shareholding structure, including three to five private or state-owned shareholders. This is part of a plan to reduce risks and increase checks and balances after the troubles under its former private ownership.
China’s leading business publication Caixin reported that the sale attracted interest from as many as six consortia. Those interested include e-commerce giant JD.com, state-owned automaker Chery Automobile and online insurance company ZhongAn, and Primavera Capital. FriedhuHe once led the Goldman Sachs China department.
As a way to improve the Chinese market discipline and eliminate Hidden guarantee to date Analysts pointed out that the state will always bail out companies in financial difficulties. Encourage creditors and the Chinese private sector Help share the burden of national lenders.
However, the tortuous process of dissolving and expanding Anbang has encountered some obstacles.Most notably, at the end of last year, a U.S. court ruled that it supported the killing of a Korean Mirae Asset Company. $5.8 billion in transactions Purchased 15 luxury hotels from Ampang, USA.