Banking News
- Minsheng to raise stake in leasing firm
Date: 26-Jul-2007 Sources: (Shenzhen Daily)
CHINA Minsheng Banking Corp., the nation's only non-State bank, said yesterday it will take up a larger stake in a planned financial leasing company after one of its potential partners withdrew from the venture.
The Shanghai-listed mid-sized bank said it will increase its holdings in the leasing firm to 81.25 percent from the originally planned 51 percent after China Power Finance Co., a unit of China's largest electricity distributor State Grid Corp., withdrew from the investment.
The bank didn't give a reason for China Power Finance's withdrawal. Officials at the bank and China Power Finance weren't immediately available for comment.
The bank said in March China Power Finance and Tianjin Bonded Zone Investment Co. planned to invest in the financial leasing company, which would have registered capital of 4 billion yuan (US$529.11 million).
It said at the time China Power Finance would hold 34 percent, while the Tianjin-based State investment firm would own 15 percent.
Under the revised plan, the registered capital for the leasing firm will be cut to 3.2 billion yuan and Tianjin Bonded Zone Investment will hold a stake of 18.75 percent, Minsheng said.
Minsheng said the deal is still subject to approval from the banking regulator.
Eddie Wang, president of China Minsheng, said last Thursday that the bank's board will decide on a Hong Kong listing plan in the next couple of months.
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