(Yicai Global) April 7 -- A minority shareholder’s 100 million shares in Sichuan Bank, China’s largest city commercial bank, are to be auctioned off owing to the shareholder’s involvement in a loan dispute.
The Chengdu Intermediate People’s Court in Sichuan province will auction Sichuan Bank’s about 0.33 percent shares held by Sichuan Haoji Food Group on May 6-7, with a starting price of CNY130 million (USD19.9 million), according to data from the Alibaba auction platform.
Sichuan Bank opened on Nov. 7 last year. Introducing 28 investors, the bank was set up by the merger of Panzhihua City Commercial Bank and Liangshan Prefectural Commercial Bank.
At CNY30 billion (USD4.6 billion), it boasts the largest registered capital among municipal commercial banks in China.
The shares involved in the auction belong to Liangshan Prefectural Commercial Bank, a source with Sichuan Bank told Yicai Global.
Haoji Group was a shareholder of Liangshan Prefectural Commercial Bank. And the group’s shares in the latter were converted into shares of Sichuan Bank by means of net asset conversion. Haoji Group is not now among the top 10 shareholders of Sichuan Bank.
Sichuan Bank said that it will strictly follow relevant laws, regulations and banking supervision provisions to review buyers’ shareholder qualifications.
Haoji Group is mainly engaged in the processing and sales of condiments, beverages and various foods, with Haoji chicken essence its leading product. Nestle and Haoji Group set up a joint venture, Sichuan Haoji Food, in 2002.
Editor: Peter Thomas