Unionlife Insurance Company,Ltd. is planning to sell a controlling stake that could be snapped up by locals or foreigners looking to tap into the country's growing demand for insurance products, three people familiar with the matter told Reuters. Union Life, expected to be valued at $1.5 billion to $2 billion, plans to sell as much as 51%, with an option to raise that to 100% later, the people said, declining to be named as the details are not public yet. AIA Group Limited (SEHK:1299) and the Asian unit of Prudential plc (LSE:PRU) are among the foreign players likely to submit initial bids due over the next few weeks, the people added.

The shortlist of buyers interested in Union Life after the first-round bids is likely to be completed by the end of this quarter, one of the people said. Spokespeople at Union Life could not be reached by Reuters even after several calls to its headquarters at Beijing. AIA and Prudential representatives declined to comment.