Ping An Insurance announced on Friday that it is to become a strategic investor in Shenzhen Development Bank SDB. The move will help the insurer achieve its goal of becoming an integrated financial services company, and will also boost SDB's capital adequacy ratio.
The acquisition of the SDB stake will be a two-part process. There is a private placement, in which Ping An will subscribe to new shares in the bank. As well as that, the insurer will buy the entire stake held by SDB's largest shareholder, financial sponsor Newbridge Capital, either for cash or through a share swap. Following the two transactions, Ping An will own no more than 30% of...
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