"We are delighted to have appointed Deutsche Bank to manage our ADR program and look forward to working with the global team to develop our ADR program," said Jacques Tierny, Chief Financial Officer at Gemalto.

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After the deal, the stake Deutsche Bank controls in Hua Xia Bank will reach 14.7 percent, exceeding a 13.98 percent held by Shougang Group and letting the German lender become the biggest shareholder of the Shanghai-traded bank. In addition, Deutsche Bank controls a 2.42 percent stake in Hua Xia Bank via its wholly-owned subsidiary Deutsche Bank Luxemburg SA. So, the stake it directly and indirectly holds in the Chinese bank totals 17.12 percent, with an average cost of CNY 7.73 per share.

In order to catch up with Deutsche Bank in terms of Hua Xia Ban stake, Shougang Group should spend at least CNY 437 million, said industry observers. It has been unknown through what ways the steelmaker will achieve the goal. Notably, the aforesaid stake sale has not gained approval from the board of Hua Xia Bank, at which Deutsche Bank and Shougang Group each has two seats. The deal will be voted by the board under concerned legal procedures, Zhao Junxue, board secretary of Hua Xia Bank, said on November 22.

In addition to approval from the board, the deal has to win a nod from the China Banking Regulatory Commission (CBRC) and the Ministry of Commerce. Notably, the biggest shareholder does not mean the controlling shareholder, pointed Tang Yayun, an analyst with Orient Securities Co., Ltd. The stake a single foreign financial institution holds in a Chinese one is not allowed to exceed 20 percent in line with concerned rules by the CBRC. So there is little room for the German bank to buy more into the Chinese one. And the stake Shougang Group and its to-some-extent coordinator State Grid Corp of China hold in Hua Xia Bank totals 25.92 percent.

(USD 1 = CNY 6.83 and USD 1= EUR 0.67)

Source: www.p5w.net (November 23, 2009)

Akbar Poonawala, head of global equity services at Deutsche Bank, said: "We are delighted to be acting as depositary bank on the American depositary receipt (ADR) program and we very much look forward to working with Gemalto and ensuring that the company and its ADR investors receive the highest level of service."

Jacques Tierny, CFO at Gemalto, said: "We are delighted to have appointed Deutsche Bank to manage our ADR program and look forward to working with the global team to develop our ADR program."

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After the deal, the stake Deutsche Bank controls in Hua Xia Bank will reach 14.7 percent, exceeding a 13.98 percent held by Shougang Group and letting the German lender become the biggest shareholder of the Shanghai-traded bank. In addition, Deutsche Bank controls a 2.42 percent stake in Hua Xia Bank via its wholly-owned subsidiary Deutsche Bank Luxemburg SA. So, the stake Deutsche Bank directly and indirectly holds in the Chinese bank totals 17.12 percent.

Deutsche Bank will not become Hua Xia Bank's controlling shareholder and after the deal, Hua Xia Bank will have neither controlling shareholder nor actual controller as usual. Currently, Hua Xia Bank has 15 directors, of which two were nominated by the German bank. The stake a single foreign financial institution holds in a Chinese one is not allowed to exceed 20 percent in line with concerned rules by the China Banking Regulatory Commission. So there is little room for the German bank to buy more into the Chinese one.

Deutsche Bank had 683 million Hua Xia Bank shares before the acquisition, of which 416 million ones will see lockup period expire on May 18, 2011 and the remainder will witness lockup period expire on October 20, 2011. It acquired a 9.9 percent stake in Hua Xia Bank for EUR 200 million in 2005 and signed a contract to buy stake Sal. Oppenheim, the consortium partner of the deal, holds in the Chinese bank at a fixed price within a certain period. On June 8 this year, approximately 1.58 billion restricted Hua Xia Bank shares owned by 25 investors, including Sal. Oppenheim, became tradable.

Deutsche Bank acquired 267 million additional shares of Hua Xia Bank amid recession in Chinese stock market last year. The shares have a three-year lockup period and were priced at CNY 14.62 apiece, up about 90 percent from the latter's market price that time.

Hua Xia Bank had a net profit of CNY 2.64 billion in the first three quarters of this year, with that captured from July to September hitting CNY 980 million.

(USD 1 = CNY 6.83 and USD 1= EUR 0.67)

Source: dycj.ynet.com (November 19, 2009)