Friday, March 07, 2008

Pudong Bank says planned shr sale enough for 3 yrs

Shanghai Pudong Development Bank <> will not need to tap the capital markets for a major fund raising for three years after its planned share sale of up to 800 million shares, its chairman said on Tuesday.

"The capital we raise this time will support our capital base very well for the next three years," Ji Xiaohui said. He said funds from the planned share sale, which could total 25 billion yuan ($3.52 billion), would be used to boost capital and that the bank had no plans to acquire any other financial institutions at the moment.

He also said Citigroup, which owns nearly 4 percent of Pudong Bank and has repeatedly said it wanted to increase that to the maximum allowable 20 percent, would have to use Pudong Bank's market price as a reference for any share purchase.

"If Citigroup wants to increase its stake in Pudong Bank, it has to take the market price as a reference price," Ji said.

($1=7.108 Yuan)

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