The Seven Group
(ASX:SVW) is confident that its cornerstone investment in the Agricultural Bank of China will be well received by local authorities.
The Group, which is around 68% owned by Kerry Stokes, has invested more than $280 million in the bank, otherwise referred to as ABC, in what’s described as one of the biggest initial public offerings of the year.
The state-owned ABC is China's largest retail bank with 320 million customers and over 23,000 branches and outlets.
The announcement comes less than a month after Seven's merger with WesTrac, which already has a presence in Australia and China.
The move is designed to strengthen Seven’s investments in China.
Seven also signed an agreement with ABC to form a strategic alliance focusing on the mutual business opportunities for WesTrac and the bank's clients.
In the year to June 30 2009, The Seven Group achieved a $12 million net profit.
