JPMorgan Needs to Pay $1 Billion to Take Over China Fund Venture
- Shanghai International Trust agrees to sell 49% stake in fund
- Price represents a 51% premium over the appraised value
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JPMorgan Chase & Co. needs to pay at least 7 billion yuan ($1 billion) if it proceeds to buy out its counterpart in its Chinese mutual fund business, a pricey premium for the U.S. bank that has ambitions to expand in China’s finance sector.
JPMorgan’s business partner Shanghai International Trust Co. said it agreed to sell its 49% stake in China International Fund Management Co., which oversees about 150 billion yuan of assets, according to a statement. The price is a 51% premium over the appraised value of the stake. JPMorgan announced in April it would gain full control, without mentioning the price.