US-based private equity firm TPG Capital is close to a deal to sell all or part of its controlling 17% stake in China’s Shenzhen Development Bank, according to reports.
Souces told the Wall Street Journal that Chinese insurer Ping An Insurance Group was in talks with TPG and SDB to become the bank’s largest shareholder by subscribing to new shares issued by the bank and taking on at least part of TPG’s stake.
TPG, which owns the stake via its Newbridge Capital fund, is apparently locked into the investment until next year, however it was reported in February that the firm had started looking for a buyer.
According to Reuters, Ping An said in a statement on the Chinese version of the Hong Kong Stock Exchange website that it had suspended shares until it completed discussions about a major transaction. SDB has also reportedly suspended its shares. Industry experts have apparently said that a successful tie-up could lead to a merger of SDB and Ping An’s own smaller bank.
TPG Capital is the buy-out arm of private investment firm TPG. With assets under management worth approximately $45 billion, the firm has 16 offices across the US, Europe, Asia and Australia.
TPG’s Newbridge Capital fund originally paid $155 million for 18% of SDB in 2004.
D.C.