China Life Insurance (Group), the country's largest insurer, will pay US$4.08 billion for a 31.94% stake in China Southern Power Grid, making it the second-largest shareholder in the state-owned utility, the South China Morning Post reported. China Life officials said Thursday it would will buy 19.2 billion Southern Power shares from the Guangdong provincial government and act as a silent financial investor. The deal was signed between China Life and the Guangdong government, which will remain the largest shareholder. Mainland press reports said a portion of the investment will be used by the Guangdong government to recapitalise bankrupt Guangdong Development Bank, which was sold last month in a US$3.06 billion deal to a Citigroup-led consortium that included China Life.
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