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Australia's Seven buys into Agricultural Bank IPO


SYDNEY — Australian media and investment company Seven Group Holdings Ltd. said Wednesday it had reached agreement with the Agricultural Bank of China to invest $250 million in the lender's record-breaking initial public offering. Agricultural Bank of China, the last of China's "big four" state-owned banks to seek a share listing, last week began marketing for an IPO in Shanghai and Hong Kong that is likely to exceed $20 billion, making it the world's biggest IPO ever. The bank plans to sell up to 53 billion shares in separate listings on the two exchanges, equal to 15 percent of its equity. Subscriptions for the IPO begin July 1, with trading in Shanghai due to start on July 15. Seven, best known in Australia for its TV network of the same name, said in a statement that it had signed a memorandum of understanding with the bank that will make it "one of a number of cornerstone investors" in the IPO. The statement said Seven will invest $250 million as part of a strategy to underpin its WesTrac China business — which owns heavy machinery dealerships in the country — and to "create new opportunities for Seven to leverage China's economic growth." Britain's Standard Chartered Bank has also signed an agreement on a partnership with the rural lender, though it has not disclosed any figures on investment in Agricultural Bank's IPO. The share offering is expected to draw strong backing from government institutions and sovereign wealth funds: several of the big global funds are reportedly taking sizable stakes, including Singapore government investment arm Temasek Holdings. —AP
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