It has only been three weeks since Ant Financial’s plan to increase capital and expand shares. If the plan is reached, China Cinda will become the second largest shareholder.
The capital increase plan of Chongqing Ant Consumer Finance Co., Ltd. (hereinafter referred to as “Ant Consumer Finance”) changed three weeks after the “official announcement”, and China Cinda, one of the four major national asset management companies (AMC), gave up the subscription.
Late on the night of January 13, China Cinda (1359.HK) announced that it would not participate in the equity subscription, stating that the board of directors announced that the company, after further commercial and prudent consideration, negotiated with the target company (Chongqing Ant Consumer Finance Co., Ltd.) not participate in this share subscription.
This is only the past three weeks since Ant Financial’s capital increase and share expansion plan was reached.
According to the equity subscription plan announced on December 24, 2021, China Cinda, as one of the capital increase subscribers, entered into an equity subscription agreement with Chongqing Ant Consumer Finance Co., Ltd., other capital increase subscribers and other existing shareholders. According to the equity subscription agreement, Ant Financial will issue an additional registered capital of RMB 22 billion to all capital increase subscribers. Among them, China Cinda will invest 6 billion yuan to subscribe for 20.000% equity interests in Ant Consumer Finance in cash. After the completion of the capital increase, the registered capital of Ant Consumer Finance will increase from 8 billion yuan to 30 billion yuan, and China Cinda and its subsidiary Nanyang Commercial Bank will hold a total of 24.003% of the shares.
China Cinda stated in an announcement on January 13 that the above-mentioned equity subscription agreement will not be submitted to the company’s general meeting of shareholders for deliberation. Not participating in the share subscription will not have a material adverse effect on the company’s operations and financial condition.
According to the original plan for capital increase and share expansion, a total of 6 companies participated in capital increase and share expansion. In addition to China Cinda, Ant Group (contributed 11 billion yuan), Yuyue Medical (contributed 1.0978 billion yuan), and Sunny Optical (contributed 18 billion yuan) 100 million), Boguan Technology (1.3222 billion yuan) and Yufu Capital (780 million yuan), except Ant Group and Yuyue Medical, the other four are new shareholders.
In June 2021, Chongqing Ant Consumer Finance Co., Ltd. was approved to open with an approved registered capital of RMB 8 billion, of which Ant Group contributed RMB 4 billion, holding 50% of the shares, Nanyang Commercial Bank held 15.01%, and Cathay United World Bank held shares. 10%, CATL (300750.SZ) holds 8%, Qianfang Technology (002373.SZ) holds 7.01%, and China Huarong (02799.HK) and Yuyue Medical (002223.SZ) both hold 4.99% .
According to the capital increase and share expansion plan officially announced in December 2021, Ant Group’s shareholding ratio will remain unchanged at 50%, China Xinda will be the second largest shareholder, and Sunny Optical will be the third largest shareholder, holding 6% of the shares.
At present, Yuyue Medical (002223.SZ) and Sunny Optical’s parent company, Sunny Optical Technology (Group) Co., Ltd. (Sunny Optical, 02382.HK), which have previously issued announcements on the above-mentioned Ant Xiaojin capital increase plan, have not yet responded to this issue. Announcement of a change.
Author of this article: Chen Yueshi, Source: The Paper, Original title: “Ant’s Capital Increase Plan Has Changed: China Cinda Abandoned Subscription, Originally Planned to Contribute 6 Billion”
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