Ant’s consumer credit unit to increase capital to $ 4.7 billion

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A man walks past an Ant Group logo at the World Artificial Intelligence Conference (WAIC) in Shanghai, China on July 8, 2021. REUTERS / Yilei Sun

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BEIJING, Dec.24 (Reuters) – Chinese group Ant’s consumer credit unit to increase the company’s share capital to 30 billion yuan ($ 4.71 billion) from 8 billion yuan, and will introduce 4 new investors strategic, according to an exchange document released Friday.

The unit, Chongqing Ant Consumer Finance Co Ltd, is under regulatory pressure to integrate Ant’s two lucrative microcredit firms, Jiebei and Huabei, which would subject it to rules and capital requirements similar to banks. .

China Cinda Asset Management (1359.HK), one of the firm’s new investors and one of the country’s four largest public asset managers, has announced that it will invest 6 billion yuan as part of the ‘exercise.

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After the deal, China Cinda will become the second largest shareholder with a 24% stake in the consumer finance unit, including a 20% stake it owns directly and a 4% stake held by Nanyang Commercial Bank Ltd. , a subsidiary of Cinda.

Ant will retain a 50% stake in the unit, Cinda’s record on the Hong Kong Stock Exchange showed.

The case also revealed the introduction of three other strategic investors in Ant’s consumer finance unit, including Sunny Optics, Boguan Technology, a unit of NetEase Inc (9999.HK) and Yufu Capital, a branch of Ant. local investment from the Chongqing government.

Last month Ant said she was looking to differentiate some of her short-term Jiebei consumer lending business as she pursues a regulator-led restructuring.

($ 1 = 6.3640 yuan Chinese renminbi)

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Reporting by Cheng Leng and Ryan Woo; Editing by Kirsten Donovan and Barbara Lewis

Our standards: Thomson Reuters Trust Principles.


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