Flat-deep integration clearance in two lines after the net profit will increase significantly

Deep development and Ping An of China issued a separate announcement in mid-September, agreeing to have about 7.825 billion shares of Ping An bank held by Ping An in China (about 90.75% of the total capital of Ping An bank) and some cash to subscribe for about 1.638 billion shares of Non-public offering at a price of $17.75 per share. After the deal, China's Ping An will hold about 52% of its stake in the latter's controlling shareholder, while Ping an bank becomes a deep development subsidiary. The Board also considered the adoption of a profit forecast compensation agreement with China Ping An and other related bills, the bulletin said. China Ping An agreed that in the 3-year compensation period after the completion of the transaction, such as the profit of Ping An bank can not reach the forecast of profits, it will be in cash form to compensate for the deep development.　　The programme will be submitted to the respective shareholders ' meetings for consideration, which will then be submitted to the relevant regulatory bodies for approval. According to estimates, the two lines of integration after the total assets will reach nearly 900 billion, if the merger, 2010 after the combined net profit will reach 7.779 billion yuan, the 2011 combined net profit is expected to reach 9.553 billion yuan.　　Under normal operating conditions, the projected net profit attributable to the merger and deep Development in 2010 and 2011 will be not less than RMB 7.62 billion and RMB 9.34 billion respectively. After the two lines of integration, as the profitability of a significant increase, will have a better investment value. In addition, the two lines of integration will also play in the dot and scale will immediately significantly enhance and realize the breakthrough of cross-selling and other four synergies, and will be rapid business expansion throughout the country. At the same time, the deep development agent Richard Jackson said that the two lines of integration adhere to the "No layoffs do not pay no downgrade" of the Three principles.　　With regard to the interests of some minority shareholders of Ping An bank, Richard said the disposal of these minority shares would be held in the same shares and would be fair and impartial in guaranteeing their interests. Two lines consolidated by Ping An and deep development the board of Directors approved a number of bills for the issuance of shares to purchase assets, including the adoption of earnings forecasts and financial reports related to major asset restructurings, on September 14, on the basis of a deep development announcement. Under this resolution, about 7.825 billion shares of Ping An bank, which is intended to be held by Ping An, will account for about 90.75% per cent of the total equity of Ping An bank and the subscription of the paid cash to subscribe for about 1.638 billion shares of the deep development private offering at a price of $17.75 a share. As assessed by the Sino-Union Assets Assessment Limited, the assessment value of Ping An bank on June 30, 2010 as the base day of assessment is about $29.08 billion. The Board also considered approving a bill related to the deal, as the deal also constituted a major asset reorganization for the company.　　The Board agreed to submit the transaction to the shareholders ' general meeting on September 30 and, if approved, submit the relevant regulatory authority for approval and complete the transaction upon approval. China's Ping An night also announced that the company's board of directors to consider the adoption of the above major asset purchases and associated transactions and related issues, such as a number of bills, the current transaction still requires both shareholders general meeting and regulatory approval. IfThrough, after the above transaction completes, the deep development and the Ping An bank will study the feasible plan to the two line follow-up integration. In due course, the development will take the form of two-line integration, including, but not limited to, the means permitted by applicable laws such as the incorporation of Ping an bank. The Board also considered the adoption of a proposal to sign a profit forecast compensation agreement with the deep development, and combined with the 2010 and 2011 earnings forecasts and commitments of Ping An bank, it is expected that the bank's 2010 profit will increase by at least 58% To 1.75 billion yuan, 2011 net profit increased to 2.3 billion yuan, in 2010 the expected market net rate of about 1.79 times times, 2011 expected market net rate of about 1.57 times times.　　The move makes the bank of Ping An as an injection of assets to the deep development of the profit contribution has a guarantee, protect the interests of both parties to the transaction, and the transaction will be completed after the stable development of banking business has a positive impact. Deep development said that the transaction audit and evaluation strictly follow the relevant laws and regulations and regulatory requirements, and better consider and balance the interests of all stakeholders.　　If the two lines are integrated, they will further strengthen their market position, enhance their competitive advantage and sustainable development ability, and build a more leading national commercial bank. It is expected to bring huge scale expansion and synergy effect after the advantage of synergy shows accelerating the development of the national expansion and the integration of Ping an bank. It is estimated that after the completion of the transaction, the end of 2011 is expected to develop the total assets will be more than 900 billion, credit card issuance volume reached 9 million, the combined net profit in 2011 will be more than 9 billion yuan. In this way, the new bank size and profitability has been greatly enhanced to become a huge competitive and competitive advantage of the medium-sized banks, backed by Ping An insurance group, which brings huge customer resources, channel marketing advantages, thus conducive to rapid business growth and profitability of the promotion.　　The value of the newly merged banks ' investments will also be better revealed and tapped by investors. The two-line consolidation will also play the following four areas of synergy: first, the network and expansion capacity will be immediately increased: the bank will quickly increase the coverage of the city 5, the number of outlets will be immediately upgraded to more than 370, the conditions for leapfrog expansion, and through increased capital to increase lending capacity and increase in sales network, will be able to obtain more quality customers, customers will also directly benefit from more convenient outlets and self-service equipment distribution and more product selection. Second, we can give full play to the current business advantages of the two lines. The combination of the SME loan business of Ping An bank and the deep developing trade financing platform will enhance the financial service ability of SMEs; At the same time, the integrated bank credit card business will be greatly enhanced, and will provide excellent cash management and remote retail banking business; third, to achieve a breakthrough in cross-selling. Future deep development will focus on China Ping ' an strong resource advantages, including more than 56 million of China Ping ' an personal customer, 2 million company customers and 3,500 distribution outlets, to enhance the breadth and depth of cross-selling, to achieve goodSynergistic effect.　　IV, in terms of costs and infrastructure, the integration of two headquarters will hopefully achieve economies of scale and cost reduction in the future. Richard said the two lines of integration will be complementary to each other and win the choice between the parties. If the two lines of consolidation are carried out, the consolidated bank will have the good conditions for rapid and robust development, customer service and internal management to step up. In the future, by virtue of China's security in the customer base, channel, backup platform and other aspects of the advantages, integrated banks will gain the advantage of scale development, faster market share, gradually realize the scale effect, for the shareholders continue to bring good returns to the new stage of development.　　As for the issue of consolidated bank names, he said he would take full advantage of Ping's brand, but it has not yet been finalized.　　"Three not policy" saves talent care shareholder's interest in the recent spread of the "deep development staff loss" rumors, Richard's urgent "rumor" said that the two lines did not because of the integration of the phenomenon of huge loss of personnel, for a small number of affected people, he pledged "will be properly placed." He believes that the two lines of integration, whether employees, or shareholders are a rare positive. Richard admits that employee stability is one of the top concerns of the two-line merger. We have promised to retain talents by "three policies", "no layoffs, no pay cuts, no demotion". We will ensure that every employee is properly accommodated. In addition to our future advantages so obvious, will provide more jobs.　　The next thing is not a lot of people, but the need for more people to work, the merger of the new bank will be particularly attractive in the future. As for the interest of the small shareholders of the Ping an bank to be fair and impartial, Richard said that our integration is also for the benefit of shareholders for a long time, two lines of integration, plus the advantages of Ping An group, can definitely bring a lot of value to the new bank. I hope the deep development of the shareholders of the peace and Security Bank of small shareholders can see this, of course, I do not dare to speculate on how the results, so far we have received positive feedback. Now it's very close to the shareholders ' meeting, and what I want to say is that this integration is good news for all shareholders.　　In order to guarantee shareholders ' interests, especially the interests of the small shareholders of Ping An bank, we also agree that our principle is "fair, just, same right and transparent". He said that the future development will promote the integration of Ping An bank, Ping an group agreed to support the integration of deep development and provide the necessary assistance, including but not limited to the deep development of the integration of peaceful banks in the form of absorption and consolidation, within the applicable law and the relevant authorities allowed, Ping An group as a third party or designate other third direction Ping An bank in addition to the deep development of shareholders to provide deep development of the shares as absorption of the merger of the price, the acquisition of deep development of dissident shareholders hold a deep development stake.