CDF convened a board meeting on 27th November, 2020 to approve the tender offer plan to acquire China Life common shares. The following tentative tender offer conditions are subject to regulatory authority approval and to be finalized at the board meeting following such approval.
Tender offer price: tentatively set at $23.6 in cash per China Life share. Volume of shares being purchased: predetermined at 1,000,000K shares (hereafter referred to as “predetermined purchase volume”), equivalent to 21.13% of total outstanding China Life shares. Minimum purchase volume: about 236,570K shares, equivalent to 5% of total outstanding China Life shares.
PwC has issued a professional fairness opinion regarding the proposed tentative tender offer price. The tender offer premium is 17.2 % comparing with the 20-day average stock price of $20.14.
CDF initially acquired 880,000K China Life shares (approximately 25.33% of shares outstanding) in September 2017. Including the shares held by KGI Securities, currently CDF’s overall ownership percentage is 34.82%. If CDF can acquire the predetermined purchase volume via this tender offer, overall ownership percentage will reach 55.95%, and China Life will become a subsidiary with more than half of its shares owned by CDF.
Since the incorporation of China Life as a subsidiary on September 2017, CDF has become a much larger and more profitable financial holding company consisting of four profit engines: life insurance, banking, securities and venture capital/ private equity. During this period, China Life performance has continued to improve and contributed positively to CDF profitability, capital efficiency and return on equity. In the future, we plan to further increase cooperation and synergies across the group, accelerate our digital efforts, become an employer of choice and further build on our leadership position in ESG.