A group of Asian firms affiliated to e-commerce tycoon Jack Ma have bought a Hong Kong-based firm of MassMutual.

MassMutual International has agreed to sell its Hong Kong-based business to Asian firms linked to Chinese tycoon Jack Ma, founder of e-commerce giant Alibaba. The size of the deal is worth around $1.01 billion in cash and 800 million shares of Yungfeng at HK$6.5 per share (around $668 million).

The firm well sell the operation to Yungfeng FG and “several Asia-based investors”, MassMutual said in a statement last week.

As part of the transaction, Yunfeng FG will hold a direct 60 per cent interest in MassMutual Asia. The strategic investors are Meyu International Company Limited (9.8 per cent), City-Scape Pte. Ltd. (managed by GIC’s private equity group) (7.5 per cent), Ant Financial Services Group (5 per cent), Sheen Light Development Limited (5 per cent), SINA Corporation (5 per cent), Harvest Billion International Limited (4.9 per cent) and Giant Investment (HK) Limited (a wholly owned subsidiary of Giant Network Group) (2.8 per cent). These investors will hold the remaining interest in MassMutual Asia.

Yunfeng FG has indicated that it will move forward with MassMutual Asia’s employees and management team intact.

Upon completion of the transaction and under certain conditions, MassMutual International will have representation on both the Yunfeng FG and MassMutual Asia boards of directors.

“This transaction represents a significant step forward for MassMutual and its policy-owners by affording us the distinct opportunity to capitalise on the long term success and value of MassMutual Asia,” Roger Crandall, chairman, president and CEO of MassMutual. 

“At the same time, we will continue to participate in the growing and attractive Asian markets through our ongoing stake in the combined Yunfeng FG and MassMutual Asia business. The resulting company will be a full-service financial services firm, well-equipped to serve a wide range of customers, including high net worth individuals and an emerging universe of consumers with rising incomes,” Crandall said.

Eddie Ahmed, chairman, president and CEO of MassMutual International, said: “Importantly, this transaction creates potential opportunities for MassMutual to partner with an innovative network of entrepreneurial Hong Kong- and China-based businesses, with an exciting range of prospective initiatives - from big data to asset management.”

“As part of this transaction, MassMutual, Yunfeng FG and Ant Financial Services Group have agreed to enter into a strategic cooperation agreement to jointly explore future business opportunities. Additionally, we are dedicated to a seamless transition, ensuring smooth continuity for MassMutual Asia’s policy-owners and customers,” he added.

MassMutual Asia has two primary subsidiaries: MassMutual Insurance Consultants Ltd., which manages general insurance business, and MassMutual Trustees Ltd., which focuses on the Mandatory Provident Fund business, a compulsory pension plan for the retirement of residents in Hong Kong.

MassMutual Asia, which also operates in Macau through a branch office, is a wholly owned subsidiary of MassMutual International and an affiliate of MassMutual. MassMutual International also operates a business in Japan and manages a joint venture in China, neither of which are part of this transaction.