ChemChina seeks loans for Syngenta takeover deal

    CHINA National Chemical Corp. (ChemChina) is seeking to borrow a total of US$35 billion to help fund the purchase of Syngenta AG, in a potential record financing for a Chinese acquisition.

    The firm hired China Citic Bank International Ltd. to arrange a US$15 billion loan facility, which will be fully guaranteed by ChemChina, sources familiar with the matter said yesterday. ChemChina is scheduled to meet lenders this week about a separate US$20 billion syndicated loan. ChemChina agreed to buy Syngenta for US$43 billion earlier last month in deal that will transform it into the world’s largest supplier of pesticides.

    Hypermarket group Sun Art’s profit falls 15.7%

    SUN Art Retail Group Ltd. yesterday posted a 15.7 percent fall in 2015 profit, the first yearly decline since its listing in July 2011, as China’s biggest hypermarket chain faced intense competition from fast growing e-commerce platforms.

    The joint venture between Taiwanese conglomerate Ruentex Group and French retailer Groupe Auchan SA said net profit amounted to 2.4 billion yuan (US$373.15 million) last year, down from 2.9 billion yuan in 2014. That compared with an average forecast of 2.5 billion yuan from 16 analysts.

    Zheshang Bank postpones gauging demand for IPO

    CHINA Zheshang Bank Co. postponed gauging demand for a US$1 billion Hong Kong initial public offering (IPO), after stock buyers reported difficulty transferring money out of the mainland, sources familiar with the matter said yesterday.

    Potential cornerstone investors from the mainland told deal arrangers they had trouble getting timely regulatory approval to send money across the border, according to the sources. The bank had originally planned to start premarketing of the deal yesterday, the sources said.

    Shanghai Electric to take stake in Manz

    CHINESE power and electrical group Shanghai Electric has agreed to buy at least a quarter of German technology group Manz in a deal that could lead to a full takeover offer, Manz said yesterday.

    The acquisition will be carried out through a rights issue, in which Manz will issue new shares to increase its capital by about 43 percent. Manz said the rights issue would give Shanghai Electric at least 27 percent of the newly expanded share pool or a maximum of 29.9 percent.