Insurance News
- CITIC Trust may obtain backdoor listing
Date: 17-Jan-2007 Sources: (Shenzhen Daily)
CITIC Trust, an arm of China's largest financial conglomerate, China International Trust and Investment Corp. (CITIC), will seek a backdoor stock market listing, a Chinese company involved in the deal said yesterday.
Anxin Trust & Investment Co. plans to issue up to 1.5 billion new A shares to CITIC and two other local companies, including Anxin's current controlling shareholder, Anxin said in a statement.
As part of the deal, Anxin would obtain 100 percent ownership of CITIC Trust, while CITIC would become the controlling shareholder in Anxin. 'CITIC Trust would then be a listed company, paving the way for the further development of its trust business,'Anxin said.
The placement of Anxin shares would be priced at no less than 90 percent of Anxin's average traded stock market price in the past 20 days, subject to approval by shareholders and regulators.
Anxin noted that the deal might fall apart because the firm had been under investigation by regulators since September 2005 for possible violations of securities laws.
Its shares have been suspended since Nov. 22, when they closed at 4.79 yuan. Based on the stock's 20-day moving average on its last trading day, the placement of Anxin shares could raise about 5.67 billion yuan.
The money would be used to shore up Anxin's capital base and improve its profitability, the company said.
Many Chinese securities and other financial companies are seeking backdoor stock market listings as faster and easier alternatives to the process of conducting initial public offers.
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