Chief Correspondent, Hong Kong
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Jun 18, 2010

AgBank signs investors, as MidEast eyes $2 bln stake

HONG KONG, June 18 (Reuters) – Agricultural Bank of China has
reached an agreement with a group of seven investors ahead of its
massive initial public offering, sources said on Friday, with two
funds from the Middle East considering a stake that could exceed
$2 billion.

The agreements are a key step for the state-owned lender, as
the more money it can collar before the Shanghai-Hong Kong
listing, the easier it will be to raise its record-setting goal.

Jun 14, 2010

China’s AgBank seeks record $23 bln IPO – documents

HONG KONG (Reuters) – The Agricultural Bank of China is seeking to raise more than $23 billion through a dual Hong Kong and Shanghai listing, according to documents on Monday, putting it on course for the world’s biggest IPO.

The initial public offering by AgBank, founded by Mao Zedong in the 1950s as the central bank’s rural arm, had previously been touted as high as $30 billion, but has been scaled back as China’s stock markets have dropped by more than a fifth this year and global markets have been spooked by a euro zone debt crisis.

Jun 14, 2010

China’s AgBank seeks record $23 billion IPO

HONG KONG (Reuters) – The Agricultural Bank of China ABC.UL is seeking to raise more than $23 billion through a dual Hong Kong and Shanghai listing, according to documents on Monday, putting it on course for the world’s biggest IPO.

The initial public offering by AgBank, founded by Mao Zedong in the 1950s as the central bank’s rural arm, had previously been touted as high as $30 billion, but has been scaled back as China’s stock markets have dropped by more than a fifth this year and global markets have been spooked by a euro zone debt crisis.

Jun 11, 2010

StanChart, BBVA eye Indonesia bank stake -sources

HONG KONG, June 11 (Reuters) – Standard Chartered (STAN.L: Quote, Profile, Research)
and Spain’s BBVA (BBVA.MC: Quote, Profile, Research) are among the banks showing interest
in the sale of the Gunawan family’s $1.4 billion stake in
Indonesia’s Panin Bank (PNBN.JK: Quote, Profile, Research), sources with direct knowledge
of the deal told Reuters.

The 46 percent stake is on the block with UBS running the
auction, sources have previously told Reuters.

Jun 10, 2010

AgBank seeks 1-year, $1 billion lock-ups from Qatar, Temasek

HONG KONG (Reuters) – The Agricultural Bank of China ABC.UL is close to signing up a list of cornerstone investors, including Temasek TEM.UL and Qatar’s sovereign fund, for its roughly $20 billion Hong Kong and Shanghai IPO, sources involved with the deal said on Thursday, with the bank hoping to get a one year lock-up commitment.

Cornerstone investors for AgBank’s Hong Kong-listed H-share offering are expected to invest between $100 million and $1 billion each, the sources said. Interested sovereign funds, which also include Kuwait and China Investment Corp, are in talks to buy up shares worth closer to the $1 billion mark.

Jun 10, 2010

AgBank seeks 1-yr, $1 bln lock-ups from Qatar, Temasek

HONG KONG, June 10 (Reuters) – The Agricultural Bank of China [ABC.UL] is close to signing up a list of cornerstone investors, including Temasek [TEM.UL] and Qatar’s sovereign fund, for its roughly $20 billion Hong Kong and Shanghai IPO, sources involved with the deal said on Thursday, with the bank hoping to get a one year lock-up commitment.

Cornerstone investors for AgBank’s Hong Kong-listed H-share offering are expected to invest between $100 million and $1 billion each, the sources said. Interested sovereign funds, which also include Kuwait and China Investment Corp, are in talks to buy up shares worth closer to the $1 billion mark.

Jun 4, 2010

Investors to scour AgBank IPO docs for NPL and book ratios

HONG KONG (Reuters) – Investors will scour a preliminary prospectus for Agricultural Bank of China’s ABC.UL around $30 billion IPO, the world’s largest, for updates on its book value and bad loans.

The financial update is expected later on Friday as part of China’s fourth-biggest bank’s dual listing in Shanghai and Hong Kong, slated for July.

Jun 3, 2010

China to release AgBank prospectus on Friday: sources

HONG KONG/SHANGHAI (Reuters) – China’s securities regulator plans to release on Friday long-awaited documents for Agricultural Bank of China’s ABC.UL roughly $30 billion initial public offering, according to sources, a sign the deal is on track for a listing approval hearing next week.

Sources with direct knowledge of the matter said the China Securities Regulatory Commission (CSRC) will release AgBank’s preliminary prospectus late on Friday, which would offer key financial information on the company, not seen since the bank’s year-end report in 2008.

Jun 2, 2010

Market slide may dent AgBank IPO valuation hopes

HONG KONG/SHANGHAI (Reuters) – Agricultural Bank of China ABC.UL may struggle to get the kind of valuation it wants as it gears up to launch the world’s biggest IPO into a market that has slumped by a fifth in just six weeks.

China’s market .SSEC drop is one of several factors prompting potential investors to query whether AgBank, China’s fourth-biggest lender by assets, is worth the 1.6 times book value being bandied around in the market.

Jun 2, 2010

Prudential withdrawing from $35.5 billion AIA deal

HONG KONG (Reuters) – British insurer Prudential plc (PRU.L: Quote, Profile, Research) is withdrawing from a $35.5 billion deal to buy American International Group Inc’s (AIG.N: Quote, Profile, Research) Asian life insurance business AIA, paving the way for a potential listing of AIA.

The widely expected move by Prudential on Wednesday came after AIG knocked back a lower offer from it a day earlier, and would help the British firm avoid an embarrassing defeat at the hands of shareholders next week.

    • About Michael

      "In June 2009, Michael Flaherty became a Chief Correspondent for Reuters News, leading a team of journalists who cover investment banking, mergers & acquisitions, private equity and hedge funds, equity capital markets, natural resources and property across Asia. He arrived in Hong Kong in Feb. 2008 as Reuters' Asia Financial Services correspondent, covering the investment banks and M&A. Flaherty was hired by Reuters in New York in Dec. 2003. He was voted Reuters Journalist of the Year for his 2007 coverage of the U.S. private equity boom and bust. He started at Reuters with the consumer group covering office retailers ..."
      Hometown:
      West Newbury, Mass. USA
      Joined Reuters:
      Dec. 1, 2003
      Awards:
      Peninsula Press Club, 2002, Reuters Journalist of the Year, 2007, M&A International, 2007
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