Shenzhen Development Bank (SDB), China’s first foreign investor-controlled lender, will likely return to Chinese control if US private equity firm TPG Capital can unload its 17% stake once its lock-up period expires next year, Reuters reported. TPG, via its Newbridge Capital Fund, is the largest SDB shareholder, giving it effective control of a bank with a market value of around US$6.8 billion. "Newbridge’s exit is just a matter of time. The only question is: who will be the buyer?" said Wu Yonggang, a banking analyst at Guotai Junan Securities in Shanghai. While Ping An Insurance dropped out of talks to take the stake off of TPG’s hands last year, China Development Bank, China Mobile, and oil producer CNOOC have all shown interest. To date, no foreign banks have expressed interest in the stake.
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