After acquiring shares through auction recently, Rui Feng Bank now holds 7.58% of the shares of Cangnan Rural Commercial Bank and has become the main shareholder. According to the information from AiQicha, Rui Feng Bank's 7.58% shareholding will become the largest shareholder. Against the background of emphasizing the resolution of risks in small and medium-sized financial institutions, it is a good choice for listed banks to invest in rural financial institutions with obvious regional advantages but dispersed equity.
In the current situation where many financial institutions are contracting, some banks still choose to expand against the trend.
On the evening of June 18th, Shaoxing RuiFeng Rural Commercial Bank Co., Ltd. (hereinafter referred to as Ruifeng Bank), a listed bank, announced that it had recently acquired 26,932,478 shares of the corporate shareholders of Zhejiang Cangnan Rural Commercial Bank Co., Ltd. (hereinafter referred to as Cangnan Rural Commercial Bank) through the acquisition of shares through auctions, accounting for 2.58% of the total share capital of Cangnan Rural Commercial Bank. The above investment matters have been reported to the banking regulatory authorities and the share transfer has been completed. Ruifeng Bank now holds 7.58% of Cangnan Rural Commercial Bank.
According to a banking industry analyst at a brokerage, Ruifeng Bank, as a listed bank, has a more standardized management system and stronger capital strength compared to small local rural commercial banks. Against the background of emphasizing the resolution of risks of small and medium-sized financial institutions, it is a good choice for a listed bank to invest in rural financial institutions with clear location advantages but fragmented equity.
After nearly a year of layout, Ruifeng Bank has become a major shareholder of Cangnan Rural Commercial Bank.
According to Ruifeng Bank, on August 22, 2023, the 15th meeting of the 4th board of directors of the bank approved the proposal of "Investing in Zhejiang Cangnan Rural Commercial Bank Co., Ltd." and agreed to acquire the total amount of Cangnan Rural Commercial Bank's shares by no more than 9.8% of its total share capital through agreement transfer, auction acquisition, etc. The final subscription matters and quantity shall be subject to the approval of the banking regulatory authorities.
On December 14th last year, Ruifeng Bank completed the acquisition of part of the shares held by corporate shareholders of Cangnan Rural Commercial Bank through auction, totaling 49,726,506 shares (increased to 52,212,831 shares after Cangnan Rural Commercial Bank's annual equity distribution). This represents 5.0009% of the total share capital of Cangnan Rural Commercial Bank.
It is reported that after the recent acquisition of shares in Cangnan Rural Commercial Bank through auction, Ruifeng Bank now holds 7.58% of Cangnan Rural Commercial Bank.
Ruifeng Bank also stated that in recent years, the overall operation of Cangnan Rural Commercial Bank has been good, and its profit level has been relatively stable. Ruifeng Bank will continue to carry out all-round, in-depth cooperation with Cangnan Rural Commercial Bank through investment and shareholding, give play to synergies, realize resource sharing, fully support regional economic development and achieve high-quality development together.
Currently, the equity of Cangnan Rural Commercial Bank is highly fragmented.
Today, according to information from aiqicha, the equity of Cangnan Rural Commercial Bank is highly fragmented, and Wenzhou Zhejiang Fujian Logistics Center Development Co., Ltd. is the largest shareholder, with a shareholding ratio of 5.00168%. Zhejiang Qiangmeng Industrial Co., Ltd. is the second largest shareholder with a shareholding ratio of 5.00168%. Other shareholders hold less than 5%. This means that according to information from aiqicha, Ruifeng Bank will become the largest shareholder with a 7.58% shareholding ratio.
According to related party transaction information released on the official website of Cangnan Rural Commercial Bank in July last year, Wenzhou Zhejiang Fujian Logistics Center Development Co., Ltd. holds 49,726,506 shares of the bank, accounting for 5.0009% and is a related party of the bank; Wenzhou Furai Automobile Sales Service Co., Ltd. is an affiliate of Wenzhou Zhejiang Fujian Logistics Center Development Co., Ltd. This information is in basic agreement with aiqicha data.
In addition, by the end of 2023, the consolidated assets of Cangnan Rural Commercial Bank totaled 62.979 billion yuan, total liabilities amounted to 56.364 billion yuan, attributable net assets to parent company shareholders amounted to 6.149 billion yuan, deposit balance amounted to 45.451 billion yuan, loan balance amounted to 43.611 billion yuan, non-performing loan ratio was 0.78%, and provision coverage ratio was 639.54%.