NAB Approved for China
(3 March 2008 – China) China’s banking regulator has approved the acquisition of a stake in UTI, a Chinese Property investment trust, by National Australia Bank.
The approval for the 20 percent stake in UTI follows the announcement last September. This is the first time that a foreign company has bought into a Chinese trust company.
The value that NAB has bought the stake for is undisclosed, however is valued at around $A50 million, giving UTI a total value of around $A250 million.
The investment by nabCapital, NAB's capital markets and institutional banking division, makes the bank the third largest shareholder in UTI. NAB is now one of only six shareholders in the trust.
John Hooper, nabCapital's chief executive said that with UTI's focus on property, this deal represents an opportunity for NAB to bring their expertise in structured financing to China's burgeoning market.
Hooper also added that the cooperative venture will concentrate on developing new products, particularly in infrastructure and construction, which he saw as two tremendous growth areas in China.
Wang Xichao, UTI chairman said that NAB would help enhance UTI’s corporate governance and risk control.
The value that NAB has bought the stake for is undisclosed, however is valued at around $A50 million, giving UTI a total value of around $A250 million.
The investment by nabCapital, NAB's capital markets and institutional banking division, makes the bank the third largest shareholder in UTI. NAB is now one of only six shareholders in the trust.
John Hooper, nabCapital's chief executive said that with UTI's focus on property, this deal represents an opportunity for NAB to bring their expertise in structured financing to China's burgeoning market.
Hooper also added that the cooperative venture will concentrate on developing new products, particularly in infrastructure and construction, which he saw as two tremendous growth areas in China.
Wang Xichao, UTI chairman said that NAB would help enhance UTI’s corporate governance and risk control.
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