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Tianjin TEDA boosts stake in trust firm
(Shanghai Daily)
Updated: 2007-05-15 10:20  Tianjin TEDA Co said yesterday it has signed an agreement to boost its stake in the city's sole trust company to become its largest shareholder as part of State-led move to forge a diversified financial group.
The Shenzhen-listed arm of TEDA Investment Holding Co, a government-backed conglomerate, agreed to buy a combined 10.39 percent stake from eight shareholders at Northern International Trust & Investment Co, according to an exchange filing. Tianjin TEDA will pay 122.69 million yuan (US$15.95 million) or 1.18 yuan apiece, for 103.97 million shares in the trust firm, a move set to bolster its stake to 15.82 percent, the statement said. The eight stock holders which will sell their shares are enterprises controlled by the Tianjin government, including another of the city's key investment vehicle, Tianjin Investment Group Corp. Northern International Trust, which was set up in 1987, has net assets of about 930 million yuan and net profit of 22.79 million yuan last year, according to industry data. The trust company in April 2006 bought 51 percent of a fund venture from troubled Xiangcai Securities Co to partner ABN AMRO Holding NV in the asset management business. The central government plans to set up a new economic zone in Tianjin, hoping to take advantage of its harbor and convenient transport to inland cities, including Beijing. TEDA Investment is tasked with managing financial assets of State-owned companies in Tianjin, sources said earlier. Tianjin TEDA in October won regulatory approval to acquire 26.9 percent of Bohai Securities Co, the city's only stock broker, for 600 million yuan while TEDA Investment also agreed to invest 300 million yuan in the broker. Shares of Tianjin TEDA were suspended from trading yesterday due to the announcement of the deal. (For more biz stories, please visit Industries)
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