Ping An may place 2.99 bln H-shares with Newbridge Capital

Published: 23 Jun 2009 23:28:00 PST

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Jun. 24, 2009 (China Knowledge) - Ping An Insurance (Group) Co<601318><2318>, China's second-largest insurer, said on Tuesday that it will discuss a proposal of issuing 2.99 billion H-shares to private equity firm Newbridge Capital, the largest shareholder of Shenzhen Development Bank Co Ltd (SDB)<000001>, at a shareholder meeting on Aug. 7, sources reported.

Ping An Insurance announced on Jun. 12 that it would spend RMB 22.13 billion raising its stake in SDB to 30% from 5%. The insurer will spend approximately RMB 10.68 billion to acquire up to 585 million new shares offered by SDB and will purchase 520 million SDB shares from Newbridge Capital.

Pursuant to the agreement between Ping An Insurance and Newbridge Capital, the insurer can pay in cash or issue new H-shares to the latter to take over the 520 million SDB shares held by Newbridge Capital.

Market analysts said that it is possible that Newbridge Capital will choose the share swap since Ping An has great potential.

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