HONG KONG (MarketWatch) -- China Life Insurance Co. (2628.HK) may consider spinning off its Hong Kong unit in a separate listing in three years, the Oriental Daily reported Wednesday, citing Liu Ting-an, president of the unit.
=> normally, spin off will provide:
- Add value to the insurance company
- Provide better segment and regional financial analysis
- Allow senior management to focus on its mission & projects to both the parent company & the subsidary
Liu said China Life hasn't decided where to list its wholly owned unit, China Life Insurance (Overseas) Co., "but a separate listing in Hong Kong may confuse investors with our (Hong Kong-listed) parent company."
Liu also said the unit isn't keen on making acquisitions, and he expects its revenue to exceed HK$30 billion this year. The report didn't specify the unit's 2008 revenue.
The unit has been established for around 25 years and mainly operates in Hong Kong and Macau.
Newspaper Web site: www.orientaldaily.on.cc
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