Bank Of Nanjing Co.Ltd(601009) acquisition of Suning Consumer Finance Co., Ltd. (hereinafter referred to as Suning consumer finance) has made the latest progress.
On March 7, Bank Of Nanjing Co.Ltd(601009) announced that it planned to acquire 41% equity of Suning Xiaojin, with a planned investment amount of about 388 million yuan. After the completion of this acquisition, the proportion of Suning Xiaojin equity held by the bank will increase from 15% to 56%.
This means that Bank Of Nanjing Co.Ltd(601009) spent less than 400 million yuan, it will take the controlling stake of Suning Xiaojin. Market analysts believe that this transaction is more reasonable. Consumer finance companies are controlled by banks, which have synergistic effects such as brand support.
Bank Of Nanjing Co.Ltd(601009) said that after the completion of this acquisition, it will establish a long-term business cooperation relationship with Suning.Com Co.Ltd(002024) in the field of consumer finance business, and rely on the holding consumer finance company to cooperate with Suning.Com Co.Ltd(002024) in consumer finance business.
transaction details disclosure
Bank Of Nanjing Co.Ltd(601009) today’s announcement disclosed the details of the equity transaction.
According to the announcement, on March 4, Bank Of Nanjing Co.Ltd(601009) signed the equity transfer agreement with BNP Paribas and Suning.Com Co.Ltd(002024) group. The object of equity transfer is the 39% equity of Suning Xiaojin held by Suning.Com Co.Ltd(002024) group and all rights and interests attached thereto. Among them, Bank Of Nanjing Co.Ltd(601009) paid about RMB 344 million and transferred 36% equity of Suning Xiaojin held by Suning.Com Co.Ltd(002024) group; BNP Paribas paid 28.38 million yuan to acquire the 3% equity of Suning Xiaojin held by Suning.Com Co.Ltd(002024) group.
On the same day, Bank Of Nanjing Co.Ltd(601009) and Jiangsu Yanghe Brewery Joint-Stock Co.Ltd(002304) also signed the equity transfer agreement. The subject matter of equity transfer is the 5% equity of Suning Xiaojin held by Jiangsu Yanghe Brewery Joint-Stock Co.Ltd(002304) and all rights and interests attached thereto. The purchase price of the subject equity is 47.3 million yuan.
After this equity transfer, Bank Of Nanjing Co.Ltd(601009) will acquire the controlling right of Suning Xiaojin, and the proportion of equity held by Suning Xiaojin will increase from 15% to 56%, becoming the largest shareholder Suning.Com Co.Ltd(002024) shareholding ratio decreased from 49% to 10% Jiangsu Yanghe Brewery Joint-Stock Co.Ltd(002304) quit and no longer hold Suning Xiaojin shares. During this period, all parties to the transaction will implement the transitional arrangements.
Public information shows that Suning Xiaojin is a consumer finance company mainly sponsored by Internet retail enterprises, with the latest registered capital of 600 million yuan and headquartered in Nanjing. In terms of performance, according to the disclosed information, Suning Xiaojin realized an operating revenue of 106 million yuan in the first half of 2021, a decrease of 57.94% over the same period of last year, and a net profit loss of 34 million yuan over the same period of last year.
and banking business form synergy
Since Bank Of Nanjing Co.Ltd(601009) said at the beginning of the year that it planned to acquire Suning Financial Holdings, the progress of this transaction has been concerned by the market.
In recent years, urban commercial banks have often initiated or acquired consumer finance licenses in the market. At the end of 2021, Bank Of Ningbo Co.Ltd(002142) purchased 70% of the equity of Huarong consumer finance company held by China Huarong at a premium of 50% for 1.001 billion yuan.
From the perspective of market analysts, there are many advantages for city commercial banks to initiate or acquire consumer finance licenses. The most mentioned is that it can help regional banks expand retail business and break through license restrictions.
Dong ximiao, chief researcher of Zhaolian consumer finance, told reporters that Bank Of Nanjing Co.Ltd(601009) taking the controlling stake of consumer finance company is in line with the general market situation. There are certain advantages for consumer finance companies to be controlled by banks, which can form synergistic linkage effect and complementary effect. “Consumer finance businesses in the banking system, such as credit cards and consumer credit, are aimed at high-quality customers, and consumer finance companies can target relatively sinking customers; at the same time, consumer finance companies have a limit of 200000 yuan for a single business, so banks can do businesses that can’t be done, so the two sides form a linkage relationship.”
Dong ximiao believes that bank controlled consumer finance companies can also bring brand effect. “Brand value is actually very important to consumer finance companies. Although it can not directly bring business, it will bring some convenience with the support of banks, such as financing. The financing channels of consumer finance companies are very narrow. If there are high-quality banks, it will be easier to issue financial bonds and other financing instruments.”
As an old listed city commercial firm in Jiangsu Province, Bank Of Nanjing Co.Ltd(601009) has achieved remarkable business performance in recent years. In the first three quarters of 2021, Bank Of Nanjing Co.Ltd(601009) achieved an operating revenue of 30.302 billion yuan, a year-on-year increase of 20.99%, and a net profit attributable to shareholders of listed companies of 12.344 billion yuan, a year-on-year increase of 22.36%.
In terms of consumer loan business, Bank Of Nanjing Co.Ltd(601009) is also increasing. By the end of June 2021, the balance of Bank Of Nanjing Co.Ltd(601009) consumer loans was 109404 billion yuan, accounting for 47.9% of the balance of personal loans, an increase of 0.41 percentage points over the end of the previous year.
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