China Ping missed arbitrage opportunity deep development of additional 3 billion shrinkage

June 28, the Shenzhen Development Bulletin said that the bank's non-public offering of not more than 379 million shares of the application for the Securities Regulatory Commission, close to the previous plan 370 million shares-585 million shares of the lower limit, in order to achieve China Ping An shares deep development of no more than 30% commitments. Guotai banking analyst Wu Yonggang said that China Ping ' an has proposed 585 million shares of the ceiling, is to hope to be able to sell the original holdings of shares in a timely manner, to increase the number of additional quotas.　　But pending regulatory approvals for too long, the stock market down, so that China's peace lost in the two-tier market to sell deep development of the original shares of the opportunity. The integration of the deep development and Ping An bank is a long waits. After the issue is completed, the two banks will enter the substantive integration phase.　　Industry expectations, the next step, Ping ' an group is very likely to inject ping an bank equity injection deep development. On the evening of June 29, the announcement of major asset reorganization and continuous suspension was issued and suspended since 30th. On that day, deep development plunged 5.3% and closed at 17.51 Yuan.　　From June 2009 to date, the lowest point of its share price for June 8, the day closed at 16.70 Yuan.　　Why shrink 3 billion deep development low capital adequacy ratio restricts business development, blood demand is strong.　　According to the announcement, the deep development of the Ping an additional issue price of 18.26 yuan per share, such as in accordance with the highest 379 million shares of additional, can raise funds of 6.9 billion yuan. Upon completion of the issuance, the total number of shares will be increased from 3.105 billion to no more than 3.485 billion shares. Ping An's stake rose from 145 million to no more than 525 million shares, up to 15.06% of the total, plus 520 million shares held by the US new bridge investment, and China Ping An and its affiliates have risen to no more than 1.045 billion shares,　　The shareholding ratio rose to nearly 30% from 21.44% before the Non-public offering, which was the largest shareholder in the deep development. However, the number of additional shares eventually confirmed has shrunk by nearly 3 billion yuan compared with previous market forecasts.　　In accordance with the relevant announcement in June 2009, the number of issued is not more than 585 million shares, the issue price is the benchmark date of 20 trading day of the company's stock trading average, that is 18.26 yuan/shares, raise funds not more than 10.683 billion yuan, at the end of the release of China Ping ' An and its associated party holding A brokerage researcher said that the deep development of the "lack of money."　　The 2010-2012-year capital plan adopted by the Bank's board of directors, based on the data measured over the past three years, will maintain a core capital adequacy rate of no less than 7% for the next two years, and it needs to finance around 10 billion yuan. If according to the financing amount of 10 billion yuan need, the deep development need to directional additional 548 million shares, close to the upper limit of the issuance interval 585 million shares.　　But if this amount is issued, China's Ping An stake will reach 33.2%, exceeding the 30% per cent shareholding limit it promised in its acquisition. In order to achieve neither exceed 30% ratio, but also meet financing demand, China's peace has two ways to go. Roging, an analyst at CICC, said China's peaceTo apply to the regulator for exemption from its full offer (30%), but as it turns out, there is no access to peace on the road or regulatory approval, and the stock-market financing shock is a concern for regulators. The second way is for Ping an to sell its original holdings of deep development shares in the two tier market. So far, in addition to the deep development of the new bridge, China's Ping An and its companies in the two-tier market total holding a deep development of 145 million shares. If the stock market situation is good, the safe and timely sale of some of the original shares, the ceiling can be more than the maximum number of additional shares raised to sufficient capital.　　Ping An has indeed considered selling 3.94% per cent of its shares to ensure that the total shareholding of Ping An group does not exceed 30% after the end of the issue, Ping an said.　　But counterproductive, regulatory approval process time-consuming, in the stock market stage upward, ping not sell deep development shares, now the market continues to fall, the share price has been lower than the additional price of 18.26 yuan.　　Substantial integration to accelerate the promotion although the loss of some opportunities for additional arbitrage, but China Ping An acquisition of deep development of the long process eventually ended, the two sides to accelerate the opportunity for cooperation.　　The deep development management said that with the completion of the Non-public offering, the core capital adequacy ratio of the deep development will be increased from 5.46% to 7% in the end of the quarter, and the capital adequacy ratio from 8.66% to 10% has met the latest requirements of the CBRC to the medium-sized joint-stock commercial banks. The replenishment of core capital is critical to the development of the next phase of the line. Deep development, said the company will increase in the distribution network, quality loans and new business to promote the pace of various aspects.　　At the same time, the bank is moving forward with its first major shareholder and its affiliated companies of the various business cooperation, through innovative, professional means and channels to explore the cross-selling of the multiple win business model. After the end of the issue, the deep development and ping An bank's substantive integration will accelerate the advance.　　June 29, China Ping ' an Sun Jianyi at the shareholder meeting, said that the deep development and ping An bank will be integrated into the same bank, the specific plan is still under negotiation. In May, Richard resigned as the president of Ping an bank, early as the Special Adviser for deep Development as soon as possible to familiarize himself with the situation, led by the China Ping ' an four-person working group also stationed in the deep development, which opened the curtain deep integration.　　Then, on May 26, Richard became president of the deep development.　　Ping An bank, Acting President Ye Huanchun told reporters that the two banks have no business cooperation, and from the related transaction point of view, the cooperation between the two sides is also taboo. China Ping An middle-level personage said, the business cooperation is still early, the organization structure, the personnel conformity is the urgent matter, after the senior management personnel stratification, concerns the broad middle cadre integration to begin, then deferred to the business personnel.　　However, before this, the first need to clarify the deep development and Ping An bank restructuring relationship. On the evening of 29th, the deep Development Bulletin said that the recent plans to plan and ping An Bank of the two lines of integration of major assets reorganization matters, due to major uncertainties in related matters, to the relevant parties to consult the argument, until the relevant issues to determine and disclose the results of the subsequent licensing。 Guotai Banking analyst Wu Yonggang that Ping An bank is small, ping An group is likely to inject ping an bank into the deep development to solve the competition problem. If the Ping an bank is injected again, its stake is expected to exceed 50%, laying the groundwork for full business cooperation.