Singapore state fund Temasek Holdings is among the six bidders who have submitted bids to buy up to 10 per cent stake in China’s state-owned Postal Savings Bank of China (PSBC) for at least $3 billion, a recent report said.
DEALSTREETASIA had reported in February that Postal Savings Bank of China (PSBC), which holds about $800 billion in deposits, had approached several investors to offload a minority stake ahead of its mega listing, which could see it raise anywhere between $10 to $25 billion.
At the top end an initial public offering of this size could match China’s Alibaba’s record $25 billion float last year.
The stake could be sold slightly above PSBC’s book value, which is at a slight discount to the price-to-book value of 1.26 of China’s big banks, according to Thomson Reuters data, the report said, while adding that the “pre-IPO stake sale would be the stepping stone that would set a valuation benchmark” for the upcoming listing in 2016.
The Reuters report by Denny Thomas and Elizio Barreto further said that “PSBC has about 40,000 branches, and a strategic partnership could help foreign banks sell insurance and banking products to China’s vast population”.
Postal Savings Bank invests in Chinese government bonds and the interbank market and also lends to small and medium-sized enterprises and agricultural households