LONDON - The Dutch financial services firm ING Group agreed on Friday to a $2.1 billion deal to sell some of its Asian insurance businesses to the Pacific Century Group, which is owned by the son of one of Asia's richest men.
Under the terms of the deal, Pacific Century, owned by Richard Li, son of Li Ka-Shing, will acquire ING's insurance units in Hong Kong, Macau and Thailand.
The divestment is part of a sell-off of several of ING's business units that the Dutch government mandated after providing a $12.9 billion bailout for the company during the financial crisis. The money raised from the sale will help repay the Dutch government.
ING already has sold its Malaysian insurance unit to A.I.A. Group, the Asian insurance giant partly owned by American International Group, for $1.7 billion.
ING also recently unloaded its 9 percent stake in the American bank Capital One in a deal worth around $3 billion, and sold its British savings and loan business t o Barclays.
This latest sale of its insurance operations in Hong Kong, Macau and Thailand would result in a net gain of roughly $1.3 billion for ING, the company said in a statement.
“We are pleased to have found in Pacific Century Group a good home for our customers, employees and agents with the ambition to continue to expand the businesses in these countries,†ING Group's chief executive, Jan Hommen, said in a statement. “This transaction underscores the steady progress we continue to make in our restructuring.â€
The deal is expected to close in the first quarter of next year.
Goldman Sachs and JPMorgan Chase advised ING on the deal, while HSBC advised Pacific Century Group.
