China’s Cinda invests $ 944 million in Ant’s consumer finance unit By Reuters
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(Reuters) – China’s Cinda Asset Management announced on Thursday that it intends to cancel a deal to buy a 20% stake in Ant Group’s consumer finance division, worth 6 billion yuan ($ 943.83 million).
The investment would increase Cinda’s interest in Chongqing Ant Consumer Finance Co Ltd to 24%, making the asset manager its second largest investor.
Cinda holds a 15% stake in the Ant-affiliated company Nanyang Commercial Bank Ltd through a Cinda subsidiary. After the investment, the stake would be reduced to 4%.
“After further consideration and negotiation with Chongqing Ant Consumer Finance, the company proposed not to participate in the share subscription,” Cinda said in a stock exchange filing.
Ant Group’s consumer finance sector is under regulatory pressure to fold Ant’s two micro-profit businesses in Jiebei and Huabei, which would impose similar banking rules and capital requirements.
Cinda, one of the country’s top four state asset managers, said the withdrawal would have no material impact on the company.
Chongqing Ant Consumer Finance said in a statement that it “fully respects the business decision of its investor,” adding that “under the guidance of regulators, the company will actively discuss with investors … and ensure consumer correction work. “.
($ 1 = 6.3571)
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