Report: TPG sells remaining $1.2bn Ping An shares

The reported share sales give TPG a landmark return of roughly 16x on its original $150m investment in SDB.

TPG Capital has reportedly sold its remaining shares in Ping An Insurance, raising about HK$9.1 billion (€908.2 million; $1.17 billion), according to various media reports.

TPG did not respond to requests for comment; Ping An could not be reached by press time.

The private equity firm sold about 139.1 million Ping An shares at HK$65.3 each, a report on Bloomberg stated. The stake sale followed TPG’s partial realisation in May when it sold more than half of its 4 percent stake in the Chinese insurer in a block trade for $1.25 billion.

Earlier in May, TPG swapped its 16.76 percent stake in Shenzhen Development Bank (SDB) for a 4 percent stake in Ping An, acquiring about 299 million newly issued Ping An shares. TPG reportedly sold around 160 million shares at HK$60.6 per share just one week after the exchange, generating HK$9.7 billion in proceeds.

The share sales give TPG about a 16x return on its original $150 million investment in SDB in 2004 – a landmark return on a landmark private equity transaction. The original deal, which was carried out by TPG’s then Asian affiliate Newbridge Capital, was the first time a foreign investor had assumed a control stake in a Chinese bank.

The firm has also recorded other successful exits in Asia recently. In March, TPG sold its 23.9 percent stake in Singapore healthcare provider Parkway Holdings to India’s Fortis Healthcare for $685.3 million, making a 3x return. This followed another exit in October 2009 when the firm received a reported A$1.3 billion in profit from its sale of Australian retail business Myer Group through an initial public offering.

Last month, TPG announced it was setting up two RMB-denominated funds in China, one each in Shanghai and Chongqing, both with targets of RMB5 billion.

The Shanghai-based fund will invest in mid- to large-sized Chinese firms with a focus on the sectors of financial services, consumer, retail and healthcare, while the Chongqing fund will make on-shore investments to expand Chinese companies to and from Western China, according to Reuters reports.