Shanghai International Port Group has monetised nearly half of its cornerstone investment in Postal Savings Bank of China’s initial public offering through a $1 billion dual-tranche exchangeable bond issue, giving it a sniff of a chance at making a profit.
Unable to exit the 10 month-old investment easily by selling the shares directly due to the low turnover of PSBC's shares and the clunky size of its stake, SIPG opted to sell exchangeable bonds in the aftermarket on Wednesday priced at a 20% premium to the share's closing price.
State-backed SIPG was the second largest cornerstone investor in PSBC’s $7.4 billion floatation...
¬ Haymarket Media Limited. All rights reserved.
