Tongyang Life Insurance gave Anbang Insurance $275 million loan for California hotel, writes UNITE HERE in letter to Tongyang shareholders

Related party transaction highlighted as Anbang mulls further investment in Korean insurer

CHICAGO--(BUSINESS WIRE)-- UNITE HERE has issued the following letter to Tongyang Life Insurance Co. Ltd. (KRX:082640) investors regarding the firm’s loan to an Anbang Insurance Group affiliate.

Anbang is seeking to raise its investment in Tongyang, according to Korean news outlets.

The letter is available in Korean at anbanghoteltraveladvisory.org/tongyang.

Dear shareholder:

I write regarding your investment in Tongyang Life Insurance (Tongyang), and to bring to your attention a $275 million related party transaction between Tongyang and Anbang Insurance Group Co. (Anbang).

An Anbang affiliate reportedly purchased a majority stake in Tongyang in 2015.

In 2016, Anbang acquired Strategic Hotels and Resorts (Strategic), a US luxury hotel owner.

In January 2017, the owner of the Loews Santa Monica, one of the former Strategic hotels, reported that it had received a $275 million loan from Tongyang.

Independent investors in Tongyang should consider the following:

• What internal controls are in place to ensure arms-length negotiations between the hotel’s owner and Tongyang?
• What are the terms of the loan, and to what extent do those terms conform to market-rate commercial real estate loans between unrelated parties?
• Does Tongyang intend to make additional loans on commercial property in the United States?

I can be reached at (312) 656-5807 or [email protected].

Thank you,

Elliott MallenResearch Coordinator, UNITE HERE

UNITE HERE is the North American hospitality union, with approximately 270,000 members in the hotel, gaming, and food service industries.

View source version on businesswire.com: http://www.businesswire.com/news/home/20170605005314/en/

UNITE HERE

Elliott Mallen
312-656-5807

Source: UNITE HERE