Minsheng shortlists banks for share sale
( 2003-08-05 15:24) (Eastday.com)
China Minsheng Banking Corp, the nation's only privately-owned lender, short-listed Citigroup Inc, Deutsche Bank AG and Goldman Sachs Group Inc to manage a US$1-billion share sale, bankers competing for the business said.
The overseas share sale, planned for early next year, would be the second by a Chinese bank after Bank of China sold stock in its Hong Kong business last year. Minsheng was due to hire advisers as early as yesterday and may choose all three banks, the bankers said.
The sale would give Minsheng funds to open new branches and increase loans to help it compete with Bank of China and other state-owned rivals. Founded in 1996 by pig-feed tycoon Liu Yonghao and other wealthy executives, its profit almost doubled last year, making it one of China's fastest-growing banks.
"A private bank in China is perceived to be more disciplined in lending and therefore worth looking at," said Tim Leung, who helps manage US$350 million at IG Investment Ltd in Hong Kong. "It's more attractive than a state-run bank, which tends to put government policy before the interests of shareholders."
Edward naylor, a spokesman for Goldman, and Michael West, a spokesman at Deutsche Bank, declined to comment. Richard Tesvich, a Citigroup spokesman, couldn't be reached for comment.
Minsheng asked invest-ment banks to guarantee the share sale and commit to sell the stock at about 4 times the bank's book value, bankers involved said.
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