Thailand-based Siam Commercial Bank is reportedly in discussions with potential buyers to sell around 25% stake in its life insurance business, SCB Life Assurance.
People with knowledge of the matter were cited by Reuters as saying that the deal is expected to be valued at about $600m for Siam, based on SCB Life’s current market value of $2.4bn.
The source also noted that Siam is negotiating with Japanese insurers to divest the stake in SCB Life, which is the fifth largest one in its segment in the country with a share of 10%.
Siam, which owns 94.7% interest in SCB Life, has declined to comment on the deal.
The lender is initiating the planned sale after three years of its acquisition of New York Life from a life insurance joint venture for $262m.
SCB Life is said to have an embedded value of around $937m at the end of 2013.
In 2013, Japanese Meiji Yasuda Insurance acquired 15% interest in Thai Life Insurance for around $700m, in a competition with Sumitomo Life Insurance.
Image: Siam Commercial plans to sell 25% stake in SCB Life Assurance. Photo: courtesy of adamr/ FreeDigitalPhotos.net.