CPIC hikes stake in Changjiang

China Pacific Insurance Group Co (CPIC), the country's third-largest life insurer, plans to spend 498 million yuan to increase its stake in Changjiang Pension Insurance Co to 51.75 percent from 13.27 percent, becoming the biggest shareholder.

The group said in a statement on Sunday that China Pacific Life Insurance Co, a wholly-owned subsidiary, will spend 170 million yuan to buy 114 million shares from Shanghai International Group (SIG). Meanwhile, the insurer also acquired 129 million shares through placement, at a price of 328 million yuan.

The transaction, if approved by the State-owned asset regulatory authorities and China Insurance Regulatory Commission, will be the first major merger and acquisition transaction between two domestic insurance companies. It will enable CPIC to gain access to the rapidly expanding enterprises annuity market in Shanghai. The company failed in an earlier attempt to win a license to manage corporate pension funds.