BBVA Buys 52.89mn H-shares in China CITIC Bank
Friday 01/16/2009 5:53 AM ET - Sinocast
Related Companies
Symbol Last %Chg
KIDSQ 0.06 0.00%
As of 12:00 AM ET 1/15/09
Spanish BBVA bought 52.89 million H-shares in China CITIC Bank Corporation Limited (SEHK: 0998; SHSE: 601998), which were sold by CITIC Group on January 9, 2009.
Parent company CITIC Group sold 52.89 million H-shares in the listed banking vehicle at HKD 3.69 a share, equivalent to 95% of the H-share price on that day and cashed about HKD 195 million in total. And BBVA, a strategic investor of the dual-listed bank, bought all the sold H-shares, which is said to have something to do with a privatization agreement on CITIC Bank inked by CITIC Group and BBVA.
According to the agreement, the Spanish investor is to spend EUR 800 million increasing its holding in CITIC International Financial Holdings Ltd. (SEHK: 0183) to 30% and in CITIC Bank to 10.07% from 4.83%. By September 30, 2008, CITIC Group had held a 55.15% stake in CITIC International Financial Holdings and the Spanish investor had taken a 14.52% stake.
