BEIJING, Aug. 24 (Xinhua) -- South Africa's biggest health care insurer Discovery has agreed to buy a 20-percent stake in China's Ping An Health Insurance, said a joint statement from the two companies Tuesday.
The statement gave no figure for what Discovery would pay for the stake, but Ping An Health chairman Lu Min said the deal would add a total of 190 million to 200 million yuan (27.9 million to 29.4 million U.S. dollars) to Ping An Health's capital, currently valued at 500 million yuan, if it were approved.
Discovery Health said in December it would pay no more than 121.5 million U.S. dollars for a 24.99-percent stake in Ping An. The statement didn't say whether an additional stake would be sold.
Ren Huichuan, vice president of Ping An Insurance Group, parent company of Ping An Health, said the purchase would result in a synergy between the most advanced technology and the largest market and distribution system.
The two sides would make joint efforts to tap China's private health insurance market with its large under-insured population, said the statement.