December 04, 2008

Shenzhen Bank shareholders approve sale stake to BaoSteel

It is reported that Shenzhen Development Bank Co Ltd’s shareholders have approved plans to place 120 million new A shares with Baosteel Group, parent of Baoshan Iron & Steel Co Ltd, at CNY 35.15 per share.

The deal is subject to the approval of banking and securities regulators.

Baosteel Group will become the bank's second largest shareholder after the deal, while US investment firm Newbridge Capital will see its holding fall to 15.8% from 16.7% although it will remain the largest shareholder.

Earlier this month, the bank announced the placement plans, which are to raise about CNY 4.218 billion to supplement working capital.