Shanghai AJ Group (600643.SS) recently announced plans to acquire a part of Qujing City Commercial Bank by subscribing to the bank’s newly issued shares, as reported by p5w.net.
Shanghai AJ plans to finance the deal entirely with cash.
After the deal, Shanghai AJ will become one of Qujing City Commercial Bank’s largest shareholders, but the company did not disclose the exact transaction amount or the stake that it will hold in Qujing City Commercial Bank.
Why It Matters:
- Currently, Qujing City Commercial Bank’s largest shareholder is Qujing City Development Investment Co., Ltd., holding a 12.04% stake in the company.
- Qujing City Commercial Bank is a local commercial bank, mainly providing services to several cities in Yunnan Province.
- Shanghai AJ is principally engaged in providing investment trust services, conducting international trading, and involvement in the real estate management business. The company plans to expand in the financial industry and it currently has licenses to operate multiple financial businesses, including trusts, securities, financial lending, and PE. Shanghai AJ believes that the deal will help the company expand in the banking business.