3i cancels sale of £182m ACR stake

Kenny Wastell
@kennywastell
09 November 2017

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3i has cancelled the £182m sale of its stake in Singapore-headquartered reinsurance company Asian Capital Re (ACR) to Asia Investment Capital.

According to trade publication Asian Insurance Review, the decision was a mutual one and was a result of "additional approvals required by Chinese regulators", which would have delayed the deal into 2018.

The development comes 13 months after 3i announced it had agreed to sell the company to the company jointly controlled by Shenzhen-government-sponsored investment firms Shenzhen Qianhai Financial Holdings and Shenzhen Investment Holdings.

The deal would have valued ACR at around $1bn. The GP said in a statement that its stake in the business had a book value of £131m as of June 2017, while the original deal valued the stake at a 42% premium on its £128m book value in June 2016.

ACR provides reinsurance and specialises in large and complex risks across non-life business lines. It has additional operations in Hong Kong, Dubai, Taiwan, Japan, Korea, Vietnam and India.