The shareholders of Shanghai Pudong Development Bank (SPD) have approved a plan to sell a 20% stake to China Mobile for CY39.8bn (US$5.9bn).
SPD will sell 21 billion shares at CNY18.03 per share.
The deal is subject to a 36-month lock-up period.
The…
The shareholders of Shanghai Pudong Development Bank (SPD) have approved a plan to sell a 20% stake to China Mobile for CY39.8bn (US$5.9bn).
SPD will sell 21 billion shares at CNY18.03 per share.
The deal is subject to a 36-month lock-up period.
The rationale behind the deal from China Mobile’s perspective is linked to its plan to develop and implement a mobile payments system.
PDB will use the proceeds of the stake sale to meet reserve requirements set by China’s banking regulator.
SPD, in which Citigroup currently holds 3.8%, is a medium-sized Chinese bank with 491 outlets in China.
China Mobile is the world’s largest mobile operator by subscribers and has US$37.5bn in ready cash to do as it pleases with.
