HONG KONG, Dec 28 (Reuters) - China Cinda Asset Management Co, one of the country’s four state-backed bad-debt managers, said on Wednesday it would sell 41 percent of Cinda Property and Casualty Insurance Co Ltd to Shenzhen Investment Holding Co Ltd for 4.22 billion yuan ($606.8 million).
Shenzhen Investment placed the highest bid in a public sale via the Beijing Financial Assets Exchange for the 1.23 billion Cinda Property and Casualty shares held by China Cinda, the Hong Kong listed firm said in a filing to the stock exchange. The listing price of the stake was 2.45 billion yuan.
China Cinda held 51 percent of the insurance unit prior to the deal, which is part of a drive to reform state-owned enterprises by introducing competent shareholders and achieving synergies.
The deal is subject to regulatory approval.
China Cinda said it would cooperate with Shenzhen Investment in further optimizing the shareholding structure of Cinda P&C to create opportunities and potential for business transformation and development. ($1 = 6.9540 Chinese yuan renminbi) (Reporting by Donny Kwok; Editing by Eric Meijer)