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Ping An extends deadline

(China Daily/Agencies)
Updated: 2009-12-26 07:04

Ping An Insurance (Group) Co, China's second largest insurer, said it would extend the deadline for the planned acquisition of Shenzhen Development Bank Co shares from Newbridge Capital LLC to April 30 from Dec 31.

The insurer may further extend the deadline by 180 days beyond April 30, according to a filing to the Shanghai exchange.

Ping An extended the deadline after talks with Newbridge, it said, without elaborating. Trading in Shenzhen Development Bank has been suspended from Friday pending a statement.

Ping An agreed in June to buy 520.4 million Shenzhen Development shares from the Asian unit of TPG Inc as part of a deal to buy a 22 billion yuan ($3.2 billion) stake in the lender.

The insurer at the time also agreed to purchase as many as 585 million new shares from Shenzhen Development Bank.

"It could be because the regulatory approvals haven't been completed," said Nan Sheng, a Shanghai-based analyst at UOB Kayhian Investment Co.

"It shouldn't have any major impact on Ping An, as you can see in its A-share performance."

Ping An shares fell 0.7 percent to 51.9 yuan in Shanghai on Friday, cutting this year's gain to 95 percent.

Regulatory approval procedures are "proceeding normally", Ping An said in an e-mailed statement on Friday. The insurer and Newbridge are "confident" about completing the deal, according to the statement.

"It's difficult to guess" the reason for Shenzhen Development's suspension, said Li Wen, an analyst at Donghai Securities Co.