Three PE firms to buy a 10% stake in China UnionPay

Jul. 27, 2009 (China Knowledge) - Three private equity firms will pay RMB 800 million for a combined stake of about 10% in China UnionPay, the only national credit card organization in the country, as the Chinese company aims to launch an initial public offering next year, a source close to the deal said on Friday, Reuters reported.

The source said that the three buyers are CITIC Private Equity, an investment arm of China's top brokerage, CITIC Securities Co Ltd<600030>, V-Stone Investments Ltd, the private equity arm of Shanghai-listed men's fashion maker Youngor Group, and a local investor.

The shares to be bought by the three PE firms are employees' shares, being sold off in preparation for next year's planned IPO.

China UnionPay declined to comment, according to the report.

By the end of June, China UnionPay's network included 1,350,000 domestic merchants, 2,110,000 POS terminals and 180,000 ATM machines.