China's Anbang Insurance Group Co. Ltd. is selling its 91.65% stake in Century Securities Co. Ltd. for at least 3.56 billion yuan, Reuters reported May 22, citing filings to the China Beijing Equity Exchange.
The sale is the insurer's first asset divestment after local authorities seized control of the insurer in February for breaching insurance laws.
It also comes after the insurer's former chairman and CEO Wu Xiaohui was sentenced to 18 years in prison over fraudulent fundraising and embezzlement.
The exchange will run an auction if more than one entity bids for the stake, adding that preferred investors for the deal should have ample capital strength and strong corporate governance.
As of May 22, US$1 was equivalent to 6.37 Chinese yuan.
