Banking

Ping An, Shenzhen bank announce merger plan

By Qiang Xiaoji (chinadaily.com.cn)
Updated: 2010-09-02 11:43

Ping An Insurance (Group) Co, China's second-largest insurer listed on the Hong Kong and Shanghai stock exchanges, plans to merge its banking unit Ping An Bank with Shenzhen Development Bank Co, according to a statement released by the two companies on Thursday, China Securities Journal reported.

More stories:  Ping An may get 1.64b Shenzhen Bank shares  Ping An H1 net up, sells stake in health unit  Ping An Insurance H1 net profit up 27.9%  Ping An Property Insurance gets OK to double capital

Ping An will buy 1.64 billion new shares to be issued by Shenzhen Development Bank through a non-public offering, at 17.75 yuan per share, according to the report.

After the deal, the insurer will become the bank's largest shareholder, with more than 50 percent of its total shares, the report said.

Shares of the two companies will resume trading on Thursday.