Ant’s customer finance unit to raise its capital to $4.7 bln

A person walks previous an Ant Team logo at the World Synthetic Intelligence Convention (WAIC) in Shanghai, China July 8, 2021. REUTERS/Yilei Solar

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BEIJING, Dec 24 (Reuters) – The shopper finance device of China’s Ant Group will improve the company’s capital to 30 billion yuan ($4.71 billion) from 8 billion yuan, and introduce 4 new strategic investors, an exchange submitting unveiled on Friday claimed.

The device, Chongqing Ant Buyer Finance Co Ltd, is below regulatory stress to fold Ant’s two valuable micro-financial loan firms Jiebei and Huabei into it, which would make it issue to procedures and money necessities related to individuals for banks.

China Cinda Asset Management (1359.HK), a person of company’s new buyers and a person of the country’s four biggest condition asset supervisors, explained it will invest 6 billion yuan as component of the exercise.

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Just after the deal, China Cinda will develop into the 2nd most important shareholder with a 24% stake in the shopper financing device, like a 20% stake it retains directly and a 4% stake held by Nanyang Industrial Lender Ltd, a Cinda subsidiary.

Ant will retain a 50% stake in the unit, Cinda’s filing to Hong Kong Stock Exchange confirmed.

The submitting also disclosed the introduction of three other strategic traders into Ant’s purchaser funding unit, together with Sunny Optics, Boguan Engineering, a unit of NetEase Inc (9999.HK), and Yufu Funds, a community financial commitment arm of the Chongqing government.

Final month, Ant reported it was in search of to differentiate component of its shorter-time period shopper bank loan business Jiebei, as it pursues a regulator-led restructuring.

($1 = 6.3640 Chinese yuan renminbi)

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Reporting by Cheng Leng and Ryan Woo Editing by Kirsten Donovan and Barbara Lewis

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