China Cinda Asset Management Co. Ltd. will not push through with its planned investment in Chongqing Ant Consumer Finance Co. Ltd., causing another investor to defer its own investment as well.
The company said Jan. 13 it will not proceed with the proposed share subscription after prudent commercial consideration and negotiations with Ant Group Co. Ltd.'s consumer finance unit.
In December 2021, China Cinda agreed to acquire a 20% stake in Chongqing Ant Consumer Finance for 6 billion yuan. The asset manager already owns a 15% stake in the Ant Group affiliate through Nanyang Commercial Bank Ltd. The stake would have been diluted to 4% after the investment.
The planned share subscription would have raised China Cinda's stake in Chongqing Ant Consumer Finance to 24% and the Ant Group unit's capital would have grown to 30 billion yuan from 8 billion yuan.
Following China Cinda's withdrawal, healthcare equipment provider Jiangsu Yuyue Medical Equipment & Supply Co. Ltd. also decided to put off its 1.1 billion yuan investment in Chongqing Ant Consumer Finance, the South China Morning Post reported Jan. 13, citing a bourse filing.
As of Jan. 13, US$1 was equivalent to 6.36 Chinese yuan.