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Deutsche Bank to seal Huaxia deal
(Shenzhen Daily/Agencies)
Updated: 2005-10-17 09:06
Deutche Bank is set to seal its first investment in a Chinese bank Monday,
signing an agreement to lead the purchase of nearly 14 percent of Huaxia Bank
(SHA: 600015) for over US$320 million, Huaxia executives involved in the deal
said.
Deutsche, Germany鈥檚 top lender, would pay US$220 million for 9.5 percent of
Huaxia, four senior Huaxia executives familiar with the deal said, underscoring
growing interest in the country鈥檚 second-tier commercial lenders.
Private bank Sal. Oppenheim would pay another US$104.1 million for about 4.5
percent, two Huaxia executives said.
Top executives with Deutsche and Huaxia are due to meet in Beijing on Monday
to sign a final investment deal after nearly a year of negotiations, all four
said.
鈥淒eutsche will lead the investment, taking about 9.5 percent of Huaxia. Sal.
Oppenheim, which was brought in by Deutsche, will take 4.5 percent or so,鈥� a
Beijing-based senior Huaxia executive said on condition of anonymity.
鈥淭he total investment will be worth (nearly) US$330 million,鈥� he said.
A Deutsche Bank spokesman in Singapore declined to comment.
Once finalized, the deal would mark the European firm鈥檚 first direct
investment in 皇冠体育app鈥檚 banking industry, after it lost a bid to buy into Bank of
Beijing in March to Dutch rival ING and the World Bank鈥檚 International Finance
Corp.
Deutsche plans to pay about 4.50 yuan (US$0.55) a share for its stake in the
second-smallest of five lenders listed on 皇冠体育app鈥檚 Shanghai and Shenzhen
exchanges, according to Huaxia executives.
That represented a 9 percent premium to the bank鈥檚 public shares, which
closed 0.24 percent down at 4.13 yuan Friday.
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