China Cinda abandons $944 million investment in Ant Group’s consumer finance unit

© Reuters. FILE PHOTO: A man walks past the Ant Group logo at the World Artificial Intelligence Conference (WAIC) in Shanghai, China, July 8, 2021.Reuters/Sun Yilei

(Reuters) – China Cinda Asset Management said on Thursday it planned to cancel a deal to buy a 20 percent stake in Ant Group’s consumer finance unit for 6 billion yuan ($943.83 million).

The investment will increase Cinda’s stake in Chongqing Ant Consumer Finance Co Ltd to 24%, making the asset manager its second-largest investor.

Cinda, through Cinda’s subsidiary Nanyang Commercial Bank Ltd, effectively owns a 15% stake in an Ant subsidiary. After the investment, the stake will be diluted to 4%.

“After further prudent commercial considerations and negotiations with (Chongqing Ant Consumer Finance), the company proposes not to participate in the share subscription,” Cinda said in a filing with the stock exchange.

Ant’s consumer finance unit is under regulatory pressure to include Jibei and Huabei, two of Ant’s lucrative micro-lending businesses, which would subject it to similar rules and capital requirements as banks.

Cinda, one of China’s top four state-owned asset managers, said the exit would not have any material impact on the company.

In a statement, Chongqing Ant Consumer Finance said it “fully respects investors’ business decisions”, adding that “under the guidance of regulators, the company will actively engage in discussions with investors … and ensure consumer rectification work.” . Financial business has been effectively carried out.”

($1 = 6.3571)

Disclaimer: Converged Media You are reminded that the data contained on this website is not necessarily real-time or accurate. All CFD (Shares, Indices, Futures) and Forex prices are not provided by exchanges, but by market makers, so prices may not be accurate and may differ from actual market prices, which means prices are indicative and not Suitable for trading purposes. Therefore, Fusion Media is not responsible for any transaction losses you may incur as a result of your use of these data.

Converged Media or anyone associated with Fusion Media will not be liable for any loss or damage arising from reliance on information such as data, quotes, charts and buy and sell signals contained in this website. Please fully understand the risks and costs associated with trading in financial markets, which is one of the riskiest forms of investing.

Source link

Leave a Reply

Your email address will not be published.