Banking News
- Minsheng bank plans to buy trust firm
Date: 21-Aug-2007 Sources: (Shenzhen Daily)
CHINA Minsheng Banking Corp. is in the final stages of talks to buy control of a domestic trust firm, as it diversifies in the financial sector, two sources familiar with the situation said yesterday.
Minsheng bank, in which Singaporean Government investment vehicle Temasek Holdings owns a stake, wants to buy between 70 and 90 percent of Shaanxi International Trust & Investment Corp. in northern China, the sources said.
'Minsheng definitely wants to control Shaanxi Trust, which also wants to team up with a commercial bank to boost its sales of trust products,'said one of the sources.
'In the near future, you will see many similar deals as it means a win-win partnership between the bank and trust firm,'the source said.
Minsheng approached Shaanxi Trust more than half a year ago and the two companies are now close to reaching a final agreement, which would give Minsheng management control of the Shenzhen-listed trust company, the sources said.
Minsheng's planned purchase of Shaanxi Trust comes after Bank of Communications announced in May that it had agreed to pay no more than US$160 million to buy an 85-percent stake of Hubei International Trust and Investment Co.
Bank of Communications, 18.6 percent owned by HSBC Holdings Plc. is China's fifth-largest lender by assets.
Financial details of Minsheng's planned purchase of Shaanxi Trust are so far unknown but the sources said the deal would be subject to regulatory approval.
Minsheng and Shaanxi Trust declined to comment yesterday.
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