Commonwealth Bank has announced its divestment of 37.5% equity interest in BoCommLife to MS&AD Insurance Group Holdings, the parent of Mitsui Sumitomo Insurance Co., with the final sale proceeds expected of $886 million, has been approved by the China Banking and Insurance Regulatory Commission (CBIRC).
The total increase in unaudited post-tax statutory earnings related to the completion of BoCommLife and other divestments would be expected to be approximately $840 million, which would be recognised as a non-cash item in the 1H21 result, the company said in the announcement made to the Australian Securities Exchange (ASX).
Further to that, the group said it had revised the calculation of non-cash gains and losses on disposal of previously announced divestments including BoCommLife, CFS, CFSGAM, CommInsure Life and Ausiex.
CBA previously announced that the ultimate completion of the divestment of CommInsure Life would be expected to occur via a statutory asset transfer in the second half of FY21 rather than on the basis of the original share sale structure.
Therefore the completion of the BoCommLife divestment would not affect the completion timing of the CommInsure Life divestment, it said.