The Kingpin intends to invest 5 billion in the Shanghai agricultural firm or become the single largest shareholder

NetEase Finance September 1 News in China Ping An successful acquisition of Shenzhen Development Bank, another insurance giant China also intends to participate in Shanghai local bank Shanghai Nong Shang Bank. NetEase Finance learned today, the Shanghai agricultural firm is carrying out directional additional related work, the Tai Bao intends to invest 50 to participate in the subscription, the two sides have already engaged in contact and negotiation.　　If the participation is successful, the Chinese Tai Bao is expected to become the largest single shareholder of Shanghai agricultural firm. The two sides are in contact to discuss the Tai Bao investment in the agricultural firm both sides have "demand." After big banks have piled up huge sums of money, small and medium-sized banks such as Shanghai's agricultural firms have also generated strong capital requirements.　　The kingpin can increase its involvement in banking and gain a stable and highly profitable investment opportunity.　　Both sides are now cautious about the process of cooperation. Shanghai agricultural firm Dong Mr. Liu told NetEase Finance, directional additional is for the bank to expand the development of consideration, now still in the initial stage, the specific number of additional shares, stock prices have not been set down.　　For the intention of the additional object, Mr. Hu said, we have cooperation with all parties intention, the Tai Bao is also willing to cooperate with the object.　　China's Tai Bao brand department concerned said that it is still inconvenient to release the relevant information, but did not deny the shares. Shanghai farmers are expected to raise the price of about 5 yuan per share of the 2009 annual report of the Shanghai agricultural firm, as at the end of 2009,　　The bank's total equity is 3.746 billion shares, the net assets per share is 3.48 yuan, earnings per share is 0.51 yuan, shareholder equity is 13.024 billion yuan, net profit is 1.973 billion yuan, net assets yield is 16.28%, total assets is 211.916 billion yuan, non-performing loan rate is 1.88%. Haitong Securities banking analyst Min Hua told NetEase Finance, from the financial data of Shanghai agricultural firm, the bank's operating and asset conditions are quite ideal.　　Tai Bao's share of the price to pay 1.5 to 1.6 times times the premium to the Shanghai agricultural firm of 3.48 yuan per unit, the Kingpin's participation in the additional price will be about 5 yuan per share.　　In other words, the Tai Bao to 5 billion shares, or will be able to obtain 1 billion shares of additional shares. The largest single shareholder among the existing shareholders of the Shanghai agricultural firm is the bank of ANZ, a foreign strategic investor of the bank, holding 19.9 of the bank and holding a total of 745 million shares.　　However, ANZ, although the largest single shareholder, did not hold Shanghai agricultural firm, Shanghai International Group, Shanghai Sheng Rong Investment Co., Ltd., Shanghai state-owned Assets Management Co., Ltd. on behalf of the Shanghai state capital Total holding the bank 24.3% of the shares, holding the number of 900 million shares. If the Shanghai agricultural firm only to the Tai Bao one to carry out directional additional, then the 5 billion of the Tai Bao will be more than ANZ will become the bank's largest single shareholder.　　However, if other shareholders in order to not make their shares are diluted, but also participate in the directional issuance of additional, whether the kingpin can get the largest shareholder is unknown. Shanghai agricultural firm An insider said that even if the Tai Bao became the largest single shareholder, will not form a direct holding of Shanghai agricultural business.　　Because of the existing shareholders in Shanghai all the state-owned shares will be more than the Tai Bao's shareholding, the Tai will not participate in the day-to-day management of the Shanghai agricultural firm.　　The Tai Bao is intended to insure synergy effect on the investment of unlisted banks in the venture capital, the Galactic Securities Insurance analyst Xu Liping analysis, the insurance company invests unlisted Bank's equity mainly out of broadening the fund investment channel, creating the financial holding platform and cooperating with the bank. Xu Liping said that insurance companies can invest a lot of money, although the current premium growth rate is fast, but still face a lot of investment pressure.　　The insurance company invests the stock of unlisted bank More is the good of the bank assets, the profit is high, through the bank and the industrial capital massive cross shareholding, produces the synergy benefit. He said the insurance companies are now making financial holding groups, hoping that the securities, trusts, banks and other financial sectors "indispensable".　　The Tai Bao is now a relatively small investment in the bank, the intention to buy Shanghai agricultural firms in the direction of the additional shares should be due to supplement the bank's investment in this block. He said that the investment in unlisted banks has a good investment income, industrial capital can enter the financing platform. The long-term holding of these shares is a positive impact on the Tai Bao, and Shanghai Agricultural and Commercial Bank listing is a matter of time, the bank is now low valuations, long-term hold good, after the listing can gain a premium benefit.