Suspension of bank loans may hit Ping An deal: report
(01-08 19:22)
China Development Bank has ordered its Hong Kong branch to suspend a loan that was intended for financing an acquisition involving the Ping An Insurance, a source from the lender said, Xinhua news agency reported.
The bank had planned to extend HK$ 44billion to Thai business conglomerate Charoen Pokphand Group. CP planned to acquire HSBC's entire 15.57 percent stake in Ping An Insurance for HK$72.7 billion.
The deal was to be completed in two phases. The first was carried out on December 7 and the second was awaiting approval from China Insurance Regulatory Commission, where the deadline was February 1.
CP has said that the second tranche of payment, which would have been HK$57.3 billion, would be partly financed by loans from the CDB's Hong Kong branch.
But the bank's headquarters has issued a risk warning to its Hong Kong office regarding the loan, which effectively calls it off, the source said.
Ping An's H-share slumped 4 percent to HK$68.15, where its A-share fell 3.7 percent to 45.46 yuan.
|
|
|
|
