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Ping An was initially working with Credit Suisse
and Goldman Sachs for the share placement, but decided to
drop the two banks after they did not garner the volume of
orders the insurer wanted at the terms it proposed, the people
said.
Credit Suisse, Morgan Stanley and Goldman declined to comment on
the placement. Ping An executives were not immediately available
to comment. The sources declined to be identified as the details
of the deal were not public.
The sources said Credit Suisse and Goldman Sachs tried twice to
come up with terms that Ping An would accept.
During the first attempt, the banks were able to secure
commitments worth $2.7 billion by offering stakes at an 8
percent discount to the stocks' last trading price on Nov. 6.
Ping An had asked for a trading halt on Nov. 7 after the stock
market regulator approved the placement.
Details of the second attempt, which took place a few days ago,
were not immediately available, the sources added.
Morgan Stanley secured the deal by bringing together a smaller
group of investors who were willing to buy a bigger stake at a
smaller discount, the sources said. The new shares were
eventually sold at a 4.7 percent discount to the stocks' Nov. 28
close, they added.
Ping An had asked Credit Suisse and Goldman Sachs to match the
terms offered by Morgan Stanley, but the two investment banks
could not, IFR, a Thomson Reuters publication, reported.
The founders of Alibaba Group Holding Ltd and Tencent Holdings
Ltd were among a consortium of about 10 investors who eventually
bought into the Ping An share placement on December 1.
(Reporting by Fiona Lau and Elzio Barreto; Writing by Denny
Thomas; Editing by)
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