Guangdong bank shortlists 4 for stake sale
Updated: 2005-10-18 14:31
Guangdong Development Bank shortlisted four bidders for its stake sale,
including Citigroup Inc. and DBS Group Holdings, Hong Kong-based Apple Daily
reported Monday, without identifying the sources.
The other two bidders are the private equity firm Carlyle Group and a group
comprised of China Huawen Enterprise Development and a major European bank, the
JPMorgan Chase & Co. and Ping An Insurance Co., which were two of the six
groups shortlisted in the previous round of bidding, were cut from the list of
bidders, the report said. Carlyle is unlikely to win the final bid, it said.
The Guangdong bank would start negotiating terms with the four bidders this
week and sign a memorandum of understanding with the successful bidder as early
as mid-November, the report said. The buyer might spend as much as US$4 billion
for a stake of more than 50 percent in the bank, the report said.
Southeast Asia's largest lender, DBS Holdings, which has been in talks with
the Guangdong bank, wanted a controlling stake in the Chinese lender, people
familiar with the deal said.
The Singapore-based DBS wanted to have more than 50 percent of the bank and
is also asking for certain warranties, said one banking source.
Media reports have valued the Guangdong deal at about S$2 billion (US$1.18
Guangdong Development, set up in 1988, had 344.5 billion yuan (US$42.5
billion) in assets at the end of 2004 and 215.7 billion yuan in outstanding
loans, according to the bank's Web site. The bank has 26 branches in cities
including Guangzhou, Shanghai, Beijing, Zhuhai and Nanjing.