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China's Evergrande ups stake in Shengjing Bank for US$1.5b

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Evergrande Real Estate Group on Thursday said it would buy an additional 17.28 per cent stake in Shengjing Bank for 10.02 billion yuan (S$2.08 billion), after the commercial bank was granted a consumer finance licence.

[HONG KONG] Evergrande Real Estate Group on Thursday said it would buy an additional 17.28 per cent stake in Shengjing Bank for 10.02 billion yuan (S$2.08 billion), after the commercial bank was granted a consumer finance licence.

Evergrande said it would buy the stake from five domestic shareholders, raising its holding to 1.58 billion shares, or 27.24 per cent of Shengjing Bank, from 577.2 million shares.

Shengjing Bank has a market value of US$8.3 billion and is involved in retail banking and funding business in the mainland. It gained a consumer finance licence in China in January.

Its shares have climbed nearly 11 per cent so far this year compared with a 1.9 per cent fall in the benchmark index.

REUTERS