ANBANG Insurance Group is looking to offload overseas properties worth about US$10 billion to shore up its balance sheet as part of a government-backed rescue, three sources with knowledge of the matter said.

The sales are likely to begin within a month, said the sources, who declined to be identified. New York’s Waldorf Astoria, bought in 2014 for US$1.95 billion, is not part of the sale, they said. The hotel is currently closed for renovation.

The sales come as the government pays increased attention to debt-laden firms with overseas investments. Some conglomerates, such as HNA Group and Dalian Wanda Group, have recently sold foreign real estate to pay down debt.

Anbang has been one of China’s most acquisitive companies, signing over US$30 billion of deals in recent years. But in February, the government said it would take control of the insurer for at least a year, following management of illegal activity which it said put the firm at risk.

Bankers and analysts have been expecting Anbang to undergo restructuring involving asset divestment before the government seeks investors for re-privatization. However, neither the size nor timing of any sales was known until now.

Anbang said it was in the process of reviewing its overseas assets and that it would not comment on market speculation.

“The review is a complex and comprehensive exercise. We currently do not have a specific asset optimization plan, nor a specific timetable,” Anbang said, adding that it had “sufficient cash flow.”

(SD-Agencies)