SDB, Ping An Restructuring Plan Approved

Shenzhen Development Bank (SDB, SZSE: 000001) on June 28, 2011 issued an announcement, saying that its significant assets restructuring project has been approved by the China Securities Regulatory Commission.

Last September 2, the Shenzhen-listed lender ever issued an announcement, saying that Ping An Insurance (Group) Company of China, Ltd. (Ping An, SHSE: 601318, and SEHK: 2318), the nation's second largest insurance conglomerate, intends to fully subscribe for CNY 1.638 billion renminbi-denominated ordinary shares in the lender with 7.825 billion shares in Ping An Bank and CNY 2.69 billion cash. After the deal, Ping An will inject a 90.75% stake it holds in Ping An Bank into the listed lender to become a controlling shareholder of the listed lender with a more than 50% stake.

Before the restructuring, the insurance giant holds a total of 1.045 billion shares in the Shenzhen-listed lender, making up 29.99% of the latter's capital stock, and a 90.75% stake in Ping An Bank. According to the first-quarter reports of this year, total assets of the two banks surpassed CNY 1 trillion.