Shenzhen Development Bank Co., the first Chinese lender to go public, said Saturday that the country��s State assets regulator had approved its four shareholders to sell their stakes in the Shenzhen-listed bank to U.S. equity fund Newbridge Capital.

In a statement filed with the Shenzhen Stock Exchange, Shenzhen Development Bank said State-owned Assets Supervision and Administration Commission had given the go-ahead to Newbridge��s plan to buy a collective 17.89 percent stake from its four government shareholders.

Newbridge lined up a deal in May to pay 1.2 billion yuan (US$145 million) for 348.1 million non-tradable shares from the four shareholders, an unprecedented deal that would make Newbridge its largest single shareholder.

The San Francisco-based fund has obtained approval for the transaction from China Banking Regulatory Commission, the country��s banking regulator, last month.

The nod from the State assets regulator clears Newbridge��s last hurdle to become the first overseas investor to control a Chinese lender.

Newbridge, whose first attempt to buy control of the Shenzhen-based bank collapsed in a legal dispute in 2003, is one of many foreign investors keen for a foothold in a huge sector that harbors US$1.3 trillion in savings.

In a statement to Shenzhen Stock Exchange on Oct. 11, Newbridge said it might boost its holding in Shenzhen Development Bank depending on conditions and would not sell its holding for at least five years.

Source: Shenzhen Daily