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Merchants fund sheds Industrial Bank stake

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China Merchants China Direct Investments, the A-share investment fund traded on the Hong Kong stock exchange, is seeking to sell its 1.68 per cent stake in mid-sized Industrial Bank worth 4.2 billion yuan.

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The listed investment fund is seeking a disposal mandate from shareholders to sell 84 million A shares that will become freely tradable on the Shanghai Stock Exchange after the lock-up in February.

The stake will be sold at a market price of at least 28 yuan per share, according to a statement filed with the Hong Kong stock exchange.

The disposal mandate is for a 12-month period from the passing of the relevant resolutions at the emergency general meeting.

The transaction will enable the China Merchants fund to reap about four billion yuan profit at yesterday's closing price of 50.75 yuan for Industrial Bank.

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China Merchants rose 4.07 per cent to close at HK$37.05 yesterday.

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