BRIEF: OneConnect receives privatization offer from parent Ping An

Financial technology services provider OneConnect Financial Technology Co. Ltd. (OCFT.US; 6638.HK) said on Monday that its controlling shareholder, financial services giant Ping An Group, has offered to take the company private.

Under the proposed plan, a Ping An subsidiary has offered to buy each of OneConnect’s Hong Kong-listed shares for HK$2.068 apiece. That amount is equivalent to $7.98 for each of the company’s U.S.-listed American depositary shares (ADS). The offer represents a 72% premium over OneConnect’s Hong Kong closing price on Feb. 27, the last day before the stock rose sharply and trading was halted.

OneConnect’s ADSs rose 21.5% to $6.68 on Monday in New York. Its Hong Kong-listed shares rose 0.6% on Tuesday after trading resumed to close at HK$1.68.

By Doug Young

To subscribe to Bamboo Works free weekly newsletter, click here