ING Group sells Hong Kong, Macau, Thai insurance units to Richard Li

ING Group said it has agreed to sell its Hong Kong, Macau and Thailand insurance businesses to Richard Li Tzar-kai’s Pacific Century Group (PCG) for US$2.14 billion (HK$16.59 billion), as the Dutch banking group scrambles to meet improve liquidity and capital adequacy ratios.

The deal, estimated at nine times estimated book value, is expected to bring ING a step closer to fulfilling conditions stemming from its government bailouts in 2008 and the year after and help Richard Li, younger son of Hong Kong tycoon Li Ka-shing, increase his presence in Hong Kong’s finance sector.

“This acquisition is absolutely in line with PCG’s strategy as a long-term holder and developer of assets and investments in three areas: financial services; technology, media and telecommunications; and property projects,” Richard Li said.

The proposed sale valued ING’s Hong Kong business at about US$2.1 billion (HK$16.3 billion) and the Thai unit at less than US$200 million (HK$1,55 billion), one person familiar with the deal said.

ING Hong Kong and Macau operations boast about 400 employees and 1,600 tied agents. The group serves more than 270,000 customers. In Thailand, ING has about 480 employees and more than 4,000 tied agents.

Earlier this month, the Dutch bank agreed to sell its Malaysian insurance business to Hong Kong-based insurer AIA for US$1.7 billion (HK$13.1 billion).

Victorina de Boer, a spokeswoman for Amsterdam-based ING, declined to comment, as did a spokeswoman for Li who asked not to be identified.