M&A

2 November, 2009

UPDATE 1-Temasek eyes AXA China stake, valued at $1.05 bln

* Temasek, Blackstone, KKR eyeing China unit stake-sources

* Deal document discloses AXA stake details in Taikang

* Document says Singapore's GIC owns 7.9 pct

* First round bids due on Friday - sources (Adds details, background)

By George Chen and Michael Flaherty

HONG KONG, Nov 2 (Reuters) - Singapore state investor Temasek [TEM.UL], Blackstone Group (BX.N) and KKR are among the firms expected to submit bids for AXA's (AXAF.PA) stake in China's Taikang Life, sources said, an investment AXA values at $1.05 billion.

First-round bidding for Taikang is due on Friday, with AXA expecting to close the deal before the end of this year, the sources, who are directly involved in the auction, said on Monday.

Taikang's total assets are worth $28.12 billion, according to an auction-related document obtained by Reuters. The sale document says that Taikang has a 7.9 pct market share in China's life insurance market as of 2008. The document also says that French insurer AXA's 15.6 stake is worth $1.05 billion.

AXA officials in Hong Kong, and private equity firms Blackstone and KKR were not immediately available for comment. Temasek said it did not comment on market speculation.

Sources told Reuters on Oct. 22 that AXA had hired Morgan Stanley (MS.N) to advise on the sale [ID:nHKG263094].

According to the sale document, another Singapore investment fund, Government of Singapore Investment Corp. [GIC.UL], owns 8 percent of Taikang Life.

Taikong is the No.4 life insurer in China in terms of total premium income in 2008, the document says, with 2008 net income of $247 million.

The sources and the person who provided the document, who was also directly involved in the auction, were not able to speak publicly about the process. (Additional reporting by Narayanan Somasundaram in Hong Kong, Saeed Azhar in Singapore) (Editing by Hans Peters and Karen Foster)

Source: http://www.reuters.com