Embattled Chinese insurer Anbang, which went under government administration earlier this year after the company founder was indicted for financial misconduct, is selling off a 35% stake in a rural bank in order to meet liquidity requirements, Caixin reports.
The stake in Chengdu Rural Commercial Bank is going for Rmb16.8 billion ($2.44 billion), according to a filing with the Beijing Financial Assets Exchange on Wednesday. This price is around 20% above the bank’s net assets as of the end of last year.
A government-led consortium which includes some private firms is odds-on to buy the stake, sources told Caixin. Alibaba is reportedly also interested in the deal.
Following the opening of a fraud investigation into Anbang founder and former Chairman Wu Xiaohui in March, government regulators visited the Chengdu bank and found risky or illicit transactions worth as much as Rmb 2 billion.