Co-chairman says the venture capital firm has not been deterred by the collapse of Shenzhen bank deal
Newbridge Capital remains keen to invest in consumer finance companies in China and elsewhere in Asia despite the collapse of its deal to buy a stake in Shenzhen Development Bank, according to a top official from the San Francisco-based venture capital firm.
Co-chairman Richard Blum said Newbridge believed 'consumer finance is in its infancy' in Asia, and it was continuing to look at potential investments in China, Taiwan, Thailand and South Korea.
In June last year, Newbridge signed an agreement to acquire 20 per cent of Shenzhen Development Bank, in a contract approved by financial regulators in Beijing and by the State Council. Newbridge began managing the bank's operations.
In May this year, Shenzhen Development Bank renounced the contract and a few days later Newbridge sued Chinatrust Commercial Bank in a Texas court alleging that Chinatrust had interfered with its deal by holding talks with Shenzhen Development Bank despite a provision granting Newbridge exclusivity.
Speaking on the sidelines of the International Finance Forum in Beijing yesterday, Mr Blum said Newbridge would prefer to avoid the courts to settle the dispute.