12:21 - ING Group to pay 1.78 bln yuan for 19.9 stake in Bank of Beijing - UPDATE2
(Updating with quote, information about bank)
BEIJING (AFX) - ING Group said its ING Bank NV unit will pay 1.78 bln yuan for a 19.9 pct stake in the Bank of Beijing.
The agreement was signed in Beijing by ING Group chairman Michel Tilmant and Bank of Beijing chairman Yan Bingzhu.
"This investment will allow ING to deepen its penetration into the Beijing market, and provides us with a platform to sell a range of insurance and investment products to an increasingly affluent customer-base," said Tilmant.
Subject to final regulatory approval, ING will take two seats on the bank's current 15-person board as part of the strategic alliance.
The ING investment represents 19.9 pct of Bank of Beijing's enlarged share capital. The bank expects that eventually the aggregate foreign share holding will account for 24.9 pct of its total registered capital.
International Finance Corp is also seeking approval from its board members to become a financial investor in the bank.
Bank of Beijing said that its shareholder equity will reach 10.1 bln yuan after the introduction of foreign investment.
The bank said it will work closely with foreign investors in the areas of risk management, IT support, small and medium enterprise services, wealth management, all-in-one financial products and direct banking services.
The Bank of Beijing is the third-largest bank in the capital with more than 116 branches. Last year the bank had 209 bln yuan in assets.
(1 usd = 8.3 yuan) sr/jpb/dk/swp