Ping An applies for placing of A-shares and A-share bonds with warrants
Ping An applies for placing of A-shares and A-share bonds with warrants
Hong Kong, 20 January 2008 – Ping An Insurance (Group) Company of China, Ltd. (hereinafter referred to as “Ping An” or “the Group”, HKEX: 2318; SSE: 601318) announced on 18 January 2008 that the Board of Directors of the Group has passed a refinancing resolution with the intention of applying for a placing of no more than 1.2 billion A-shares and no more than RMB 41.2 billion worth of A-share bonds with detachable warrants (“A-share bonds with warrants”). The refinancing program would enable Ping An to develop into a financial power house and generate steady and continuous investment returns for all shareholders.
The current refinancing plan includes the placing of A-shares and A-share bonds with warrants giving priority to existing A-share shareholders. No more than 1.2 billion A-shares, with a face value of RMB1.00 each, would be offered and priced both on-line and off-line. The offer price would not be lower than the average price of the A-shares for 20 trading days immediately prior to the date on which the listing document, in relation to the possible A Share Placing, is published, or the average price of the A shares on the last trading day, immediately before the listing document is published. At the same time, Ping An also intends to offer no more than RMB41.2 billion worth of A-share bonds with warrants, or no more than 412 million bond certificates, with a face value of RMB100 each and a maturity of six years. The term of the warrants is 12 months since the listing of the Warrants on the Shanghai Stock Exchange and it offers the subscribers the right to convert two warrants into one A-share issued by the Group.
The proceeds from the fund raising would further enhance the Group’s overall financial efficiency and performance and be used as general working capital and for investment projects permitted and approved by regulatory authorities. This would enable the Group to pursue an expansion strategy combining organic and external growth both domestically and overseas. In the financial industry, a strong balance sheet is highly critical for success. Along with the growth of the Chinese financial industry, Ping An has developed into one of the leading integrated financial services groups experiencing rapid growth in all of its business segments. As of 30 September 2007, the Group’s total assets amounted to RMB 623.722 billion (unaudited), representing a 34.6% increase compared to that at the end of 2006. The rapid development of each business unit demands greater amounts of capital and a higher level of capital adequacy.
Ping An comments that its strategic goals is to become a leading integrated international financial services conglomerate. Ping An has gained a wealth of experience in the integrated financial services arena and developed a structure with three pillars, i.e. insurance, banking and asset management, over the past twenty years. The Group has formed an effective and comprehensive financial services platform, which provides a range of service offerings encompassing life insurance, property and casualty insurance, banking, asset management, securities brokerage, trust and enterprise annuities services. With an international management team, system and operational platform, the Group has achieved exceptional business result and shareholder returns. In the future, the Group shall continue to create shareholder value through a prudent approach by nurturing business segments that strengthen long term profitability and capturing domestic and overseas investment opportunities. Ping An is striving towards its strategic goal of becoming a leading integrated financial services conglomerate on the international stage by targeted capital deployment, industry expertise leadership and rapid business expansion.
The related announcement is available on the website of the Hong Kong Stock Exchange.
