China Life Insurance Company Limited (ASX: 02628) announced that it plans to enter into a share transfer agreement with its controlling shareholder, the Group Company, before December 31, 2026.
Under the agreement, the company will sell a 33.73% equity interest in the pension insurance company to the Group Company for approximately RMB 4.1464 billion.
Additionally, the company's non-wholly-owned subsidiary, the Asset Management Company, plans to enter into a share transfer agreement with the Group Company before December 31, 2026.
Under this agreement, the Asset Management Company will sell a 3.53% equity interest in the pension insurance company to the Group Company for approximately RMB 434 million.
Following the completion of the disposals, which include both the company's sale and the Asset Management Company's sale, the company's equity interest in the pension insurance company will decrease from 70.74% to 37.01%.
The Asset Management Company will no longer hold any equity interest in the pension insurance company. As a result, the pension insurance company will cease to be a subsidiary of the company, and its financial results will no longer be consolidated into the group's financial statements.
The pension insurance company is a national professional pension financial institution that fully serves the construction of the country's three-pillar pension insurance system.
It provides clients with pension financial products and services, including enterprise annuity fund management, occupational annuity fund management, basic pension insurance fund management, commercial pension management, and pension security management.
As of the date of this announcement, the pension insurance company is a non-wholly-owned subsidiary of the company, held by the company, AMP Group, the Group Company, the Asset Management Company, and China Credit Trust Co., Ltd. with equity interests of 70.74%, 19.99%, 4.41%, 3.53%, and 1.33%, respectively.
After the completion of the disposals, the Group Company and the company will hold 41.67% and 37.01% of the equity interest in the pension insurance company, respectively.
The Group Company will become the largest shareholder of the pension insurance company, which is conducive to mobilizing a broader range of internal and external resources to support the high-quality development of the pension insurance company and actively cultivate new growth poles in pension finance.
Meanwhile, by continuing to hold a 37.01% equity interest in the pension insurance company, the company will remain its second-largest shareholder.
The company will continue to participate in major decisions regarding the operation and management of the pension insurance company and continue to share in the future development dividends of the pension insurance company.
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