Ping An to increase Shenzhen Development Bank stake

12:59, September 02, 2010      

Email | Print | Subscribe | Comments | Forum 

Ping An Insurance (Group) Co. of China plans to acquire an additional 32 percent stake in Shenzhen Development Bank for 4.3 billion U.S. in a private placement to control the national lender.

Ping An, China's second-largest life insurer by premiums, said in a statement Wednesday that it will buy 1.6 billion new Shenzhen Development Bank shares or 32 percent of the bank's enlarged capital。

Ping An will fund the deal using cash and by selling its entire 91 percent stake in Ping An Bank Co, Ltd. The deal will also lead to the merger of Ping An's banking unit with Shenzhen Development Bank, giving Ping An Insurance control of a lender with a total net asset value of 45.7 billion yuan.

Combining Ping An Bank and Shenzhen Development Bank will give Ping An Insurance control of a lender with 855 billion yuan of total assets and help it avoid falling foul of regulations barring insurers from exerting power over two banks. Shenzhen Development Bank, China's first foreign-controlled lender, contributed 204 million yuan to Ping An's 29 percent profit gain in the first half, when the stake rose to 30 percent percent.

The deal will help Ping An to operate under new Chinese insurance rules, which prevent an insurer from controlling more than one financial company that operates the same type of core business.

By People's Daily Online

(Editor:黄蓓蓓)

  • Do you have anything to say?

双语词典
dictionary

  
Special Coverage
  • Premier Wen Jiabao visits Hungary, Britain, Germany
  • From drought to floods
Major headlines
Editor's Pick
  • Players of Iran throw up their coach Velasco Julio during the awarding ceremony at the 16th Asian Men's Volleyball Championship in Tehran, capital of Iran, Sept. 29, 2011. Iran won the champion after beating China 3-1 in the final on Thursday. (Xinhua/Ahmad Halabisaz)
  • Greek artists burn copies of emergency tax notices during a protest against austerity measures in Athens, Greece, on Sept. 29, 2011. The Greek government is facing a new wave of protests as it introduces new austerity measures to obtain the sixth tranche of aids necessary to overcome the acute debt crisis.(Xinhua/Marios Lolos)
  • A winner of the 36th Miss Bikini International 2011 poses for a photo at the Olympic Sailing Center in Qingdao, a coastal city of east China's Shandong Province, Sept. 29, 2011. (Xinhua/Chen Jianli)
  • Staff members are in position at Beijing Aerospace Control Center in Beijing, capital of China, Sept. 29, 2011. Commander-in-chief of China's manned space program Chang Wanquan announced Thursday night that the launch of Tiangong-1 space lab module was successful. (Xinhua/Rao Aimin)
  • Champion of Miss Bikini from Poland receives trophy at the final of the 36th Miss Bikini International World Competition in Qingdao, east China's Shandong Province, Sept. 28, 2011. (Xinhua Photo)
  • Photo taken on Sept. 28, 2011 shows autumn scenery of populus euphratica forests in Ejina Banner, north China's Inner Mongolia. The populus euphratica forests here, with an area of 390,000 mu, or 26,000 hectares, is one of the world's most famous populus euphratica forests. The golden leaves and sunshines here in autumn is able to attract more than 100,000 person-times annually. (Xinhua/Zhao Tingting)
Hot Forum Discussion