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Ping An opens higher, SDB limit up after deal

Published 06/14/2009, 09:35 PM
Updated 06/14/2009, 09:41 PM
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HONG KONG, June 15 (Reuters) - Shares in Shenzhen Development Bank opened 10 percent higher on Monday, pushing its upper limit, after Ping An Insurance (Group) said it will buy out Newbridge Capital's stake in the mid-sized lender for 11.45 billion yuan ($1.68 billion) for cash or via a share swap.

Ping An opened up 4.7 percent at 47.20 yuan, while shares in Shenzhen Development Bank started 2 yuan higher at 22 yuan.

Ping An, the world's second-largest insurer by market value and keen to build itself into a financial conglomerate, will also pay up to 10.7 billion yuan for up to 585 million shares in Shenzhen Bank in a private share placement, leaving it with a stake of as much as 30 percent.

Both shares had been suspended since June 8.

(Reporting by Parvathy Ullatil; Editing by Chris Lewis)

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