Ping An says to fund Shenzhen Dev't Bank deal internally
Ping An Insurance (Group) Co<601318><2318>, China's second-largest insurer, has no fundraising pressure to pursue its acquisition of a 30% stake in Shenzhen Development Bank Co Ltd (SDB)<000001>, the Standard reported, citing group president Louis Cheung Chi-yan as saying.
Ping An is not under any fundraising pressure, and the SDB deal will be fully funded by the company's internal resources, said Cheung, adding that it will spend approximately RMB 10.68 billion to acquire up to 585 million new shares offered by SDB.
Ping An, which is 16.8% owned by HSBC Holdings Plc<0005>, will purchase 520 million SDB shares from private equity firm Newbridge Capital, the largest shareholder of SDB. The insurer will pay RMB 11.45 billion in cash or issue 299.09 million H-shares to Newbridge.
The insurer has no plan to further raise its stake in SDB, but the company is seeking more opportunities for future development, added Cheung.
SDB expects to introduce its services and products to Ping An, according to SDB Chairman Frank Newman.
Ping An shares will resume trading in Hong Kong and Shanghai today and SDB will resume trading in Shenzhen.
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