PingAn's acquisition for Shenzhen Development Bank approved

09:29, May 05, 2010      

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PingAn's acquisition of Shenzhen Development Bank approved

PingAn Insurance (Group) Co. of China, Ltd. and Shenzhen Development Bank yesterday announced that China's securities regulator has approved PingAn's takeover of U.S. private equity firm TPG Capital's entire 16.76 stake in Shenzhen Development Bank.

PingAn said it was approved to issue 299 million new shares to TPG in exchange for its 520 million Shenzhen Development Bank shares. The insurer announced its takeover plan in last June.

Besides the acquisition of TPG's stake, PingAn is planning to purchase 585 million new shares to be issued by Shenzhen Development Bank at 18.3 yuan a share. However, issuance of new shares still needs approval from the China Securities Regulatory Commission.

The acquisition will promote internal cooperation in the PingAn Group, said PingAn's Vice Chairman Sun Jianyi.

"Insurance, asset management and banking are the three major components of PingAn's financial business. PingAn owns China's leading insurers and asset management companies. Without the acquisition, we will face difficulties in internal resource integration," he said.

According to the acquisition agreement, the deal will bring up PingAn's profits by around 2 percent, said an industry analyst.

On April 28, Shenzhen Development Bank Co. reported a 41percent increase in first-quarter net profit thanks to steady lending growth. The bank's net profit for the first three months was 1.6 billion yuan (231 million U.S. dollars), up from 1.1 billion yuan a year earlier.

By People's Daily Online

(Editor:祁澍文)

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