OREANDA-NEWS. June 29, 2011. Shenzhen Development Bank (SDB, SZSE000001) submitted announcement to Shenzhen Stock Exchange today saying that on June 28, 2011 SDB had received CSRC approval for the acquisition of PAB shares through share issuance (the deal). Hence all regulatory approval procedures needed for the deal are completed. The bank will issue about 1.638bn new shares to China Ping An Group (PAG) via non-public offering in exchange for about 7.825bn PAB shares (accounting for about 90.75% of total PAB shares) held by PAG and about RMB2.69bn in cash. After the deal is done, SDB will hold about 90.75% of PAB shares and PAB will become a subsidiary controlled by SDB. PAG and its subsidiaries will hold 2.684bn SDB shares, or 52.38%, and SDB will become a subsidiary controlled by PAG. In the coming few months, SDB and PAB will still run their own businesses independently and there will no impact upon customers/ businesses.

According to previous announcement, next SDB will achieve the final integration of the two banks through approach including but not limited to absorption of PAB. Based on 2011 Q1 financial statements of the two banks, after integration the total assets of the combined bank exceeds RMB1,000bn, with 369 outlets and over 10 million credit cards. Based on pro forma financial statements, 2011 net profit of the merged bank is expected to exceed RMB9.5bn. The combined bank will have stronger capital strengths with its asset quality at the best level among the listed banks. The integration will effectively help the two banks to achieve mutual supplementation and network expansion and to fully leverage the synergy and concentrated resources. The combined bank will better fit in the world-leading one-stop financial service platform of PAG, achieve centralized business management and build its competitiveness through continuous improvement of customer experience and provision of a broader range of financial services.