Thursday, March 06, 2008

China Minsheng Bank to sell Haitong Sec shares

China Minsheng Banking Corp will sell a 3.26 percent stake in Haitong Securities, China's third-largest listed brokerage, via an auction, the bank said on Tuesday.

The deal could generate a net after-tax gain of 3.3 billion yuan ($465 million) for the mid-sized bank, the official Shanghai Securities News reported, adding that it was expected to be booked in the first half of the year.

The disposal of the stake, which Minsheng acquired as a repayment of debt, had been required under Chinese banking rules, the newspaper said.

Minsheng said it would auction 134 million Haitong shares using as a reference point the price of a share placement last November, which the Shanghai Securities News said was 35.88 yuan each, and based on market conditions.

Haitong's shares closed on Monday at 43.83 yuan.

($1=7.103 Yuan)

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