China's Cinda scraps 6 billion yuan investment into Ant's consumer finance unit
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[BENGALURU] China Cinda Asset Management said on Thursday (Jan 13) it plans to scrap an agreement to buy a 20 per cent stake in the consumer finance arm of Ant Group, worth 6 billion yuan (S$1.3 billion).
The investment would have increased Cinda's interest in Chongqing Ant Consumer Finance to 24 per cent, making the asset manager its second-biggest investor. Cinda already owns a 4 per cent stake in the Ant unit through a subsidiary.
"After further prudent commercial consideration and negotiation with (Chongqing Ant Consumer Finance), the company proposed not to participate in the share subscription," Cinda said in a filing to the stock exchange.
Chongqing Ant Consumer Finance is under regulatory pressure to fold Ant's 2 lucrative micro-loan businesses Jiebei and Huabei into it, which would make it subject to rules and capital requirements similar to those for banks.
Cinda, one of the country's 4 biggest state asset managers, said the withdrawal would not have any material impact on the company.
REUTERS
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