A consortium of Chinese investors, including Yunfeng Capital ended talks to acquire a US $ 5.7 billion in New China Life Insurance Co. of China sovereign fund because of the difficulty in agreeing on a price and other terms after a sharp rise the shares of the insurer.
The bold attempt by supporters of private equity firm, whose founders include Alibaba, Jack Ma, chairman of the Group, is the latest example of how Chinese entrepreneurs are playing a more important role in swaths of the economy traditionally dominated by companies controlled by the State. Hong Kong and listed on Shanghai New China Life Insurance and China is the third largest life insurance premiums.
The talks to buy stake of 31.3% held by China Investment Corp. were led by Chinese billionaire Shen Guojun, co-founder and president Yunfeng Capital operator retail malls Intime (Group) Co. according to people familiar with the situation.
Yunfeng is a private investment vehicle launched in 2010 by a group of Chinese businessmen, many of whom, like Mr. Ma, have links with key companies in the technology industry in the country. Mr. Shen had been organizing a group of Chinese businessmen to bid for the stake, the people said.
New China Life Insurance, said in a statement to the Stock Exchange of Hong Kong night on Sunday that talks between the company, shareholders and prospective strategic investor had ended after several rounds of negotiations failed to yield an agreement, without specifying a exact time frame.
The company did not name the shareholder or prospective strategic investor.
New China Life Insurance declined to comment beyond the statement on Sunday. Yunfeng Capital representatives did not respond to a call to his office. CIC officials did not immediately respond to a request for comment and Mr. Shen could not be reached immediately for comment.
Talks between Mr. Shen and China Investment Corp. hesitate negotiations on prices and the conditions stipulated in an agreement by the sovereign fund, the people said without specifying those conditions. Listed in Hong Kong, New China Life shares have increased by 77% last year, to $ 44.65 in Hong Kong (US $ 5.76) before trading was suspended on January 19.
China's Internet pioneers and unconditional financial sector are coming closer. Banks and insurers consider mobile apps as a fundamental for the distribution of their products to more than 500 million smartphone users in China canal. At the same time, Chinese Internet giants are selling financial products as a way of translating his great platform benefits users.
New China Life Insurance, said in the statement that considers "Internet-based financing is an important direction for future development" and to continue to seek opportunities related to Internet.
Alibaba and Tencent Holdings Ltd. rival met with Ping An Insurance (Group) Co. to launch online insurance Zhong An Online Property Insurance Co. in 2013. Alibaba and Tencent each have online payment platforms. Tecent has also launched a banking business, while Alibaba has received initial approvals to enter the banking business, but has not officially launched yet.