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November 30, 2007 |
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CHINA EVERBRIGHT: Shareholders OK Capital Injection from Gov't Shareholders of China Everbright Bank have approved a capital injection from the government, paving the way for the bank to sell equity stakes to strategic foreign investors, Reuters reports, citing China Everbright's statement on Wednesday. According to Reuters, the bank's statement did not specify the size of the cash infusion. However, the report recounts, China Everbright Chairman Tang Shuangning said earlier this month that the bank hopes to get CNY200 billion (US$2.7 billion) from Central Huijin, part of China's newly established sovereign wealth fund. As reported by the Troubled Company Reporter-Asia Pacific on Nov. 8, 2007, China Everbright intends to invite foreign strategic investors and sell shares to the public after the capital infusion to its long-awaited restructuring plan from the government. The bank said it would speed up the search for strategic investors and aimed to float shares as early as the first half of 2008, Reuters relates. Reuters points out that despite China Everbright being saddled with debts, overseas lenders, keen to get into China, have been interested in the Everbright because of its size and geographical reach in a nation where many high-profile domestic banks have already partnered with foreign financial institutions. Headquartered in Beijing, China, China Everbright Bank Company -- http://www.cebbank.com/ -- is the first state-owned commercial bank with shares held by international financial institutions. Everbright Bank is 21%-owned by Hong Kong-listed China Everbright Ltd, an Everbright Group unit. The Asian Development Bank is the only foreign stakeholder, with 2%. The Troubled Company Reporter-Asia Pacific stated on Aug. 9, 2007, that China has approved mid-sized lender China Everbright Bank's plan for financial restructuring, paving the way for a capital injection and eventual listing. China Everbright Bank is saddled with debts partly because of its takeover of the troubled China Investment Bank in the late 1990s. |
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