Shenzhen Development Bank (SDB) may be purchased by China Development Bank (CDB), the South China Morning Post reported. Shares of SDB rose by the 10% daily limit in Shenzhen on Monday on the news. CDB reportedly entered talks with shareholder Newbridge Capital about acquiring a controlling stake in SDB after the expiry of the lock-up period of Newbridge’s shares in SDB in December. The two companies had not reached an agreement or submitted documents for regulatory approval, a banking source told the Economic Observer. Newbridge currently owns a 16.8% stake in SDB. Acquiring a stake in SDB would give CDB more options for raising capital other than bond sales.
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