Carlyle and Dah Sing buy Chongqing stakes

22 December 2006

The US's biggest buyout firm Carlyle Group and Hong Kong-based Dah Sing Banking Group are to acquire a 25 per cent stake in China's Chongqing Commercial Bank (CQCB), it has been announced.

The stake will cost the two financial institutions around $130 million, according to CQCB, with Dah Sing taking a 17 per cent stake. Carlyle will get eight per cent.

Under current rules, Chinese banks can only sell a maximum of 25 per cent of their shares to foreign investors.

In a statement, Dah Sing said that it wanted to see the Chinese bank become a leading retail lender on the mainland, with China's economic development increasing the demand for financial services in Chongqing - one of the country's most populous cities.

CQCB currently has a total of 66 branches in the metropolis, and predicts that it will have total year-end assets of around $4.6 billion and deposits of $3.7 billion.

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