Jan. 20, 2012 (China Knowledge) - Shenzhen
Development Bank Co Ltd<000001
>, a joint-stock commercial bank based in Shenzhen
Province, said today it will spend RMB 2.7 billion or US$427.6 million to acquire the remaining 10% stake in Ping An Bank Co to become the sole owner of the lender.
In July last year, Shenzhen
Development Bank issued RMB 29 billion worth of new shares to its parent company Ping An Insurance (Group) Co<601318
>, China's second-largest insurer by premium income, to acquire the 90% equities of Ping An Bank and RMB 2.7 billion in cash for the remaining 10%.
The issuer said it will acquire the 10% stake, or 798 million Ping An Bank shares, by paying shareholders RMB 3.37 apiece.
The shareholders of Ping An Bank, who do not want to receive cash, can opt to acquire one share of Shenzhen
Development Bank at the expense of every 4.58 Ping An Bank shares.
Ping An Insurance (Group) currently hold a 52% stake in Shenzhen
Development Bank, said a person familiar with the matter, adding that the parent firm expects to integrate its financial institutions via the restructuring.
Upon the completion of the restructuring, Shenzhen
Development Bank will be renamed as Ping An Bank Co. The lender's President Richard Jackson has said the bank expects to over double its network size in the next five years after the restructuring.
At present, Shenzhen
Development Bank has around 400 outlets, including those owned by Ping An Bank, nationwide, sources reported.