Bank of America to Increase Stake in CCB
May 29th, 2008
China Construction Bank (CCB) announced on May 27th that the Bank of America is to exercise part of its call option to buy 6 billion Hong Kong-listed CBC shares from Huijin at about 2.42 Hong Kong dollars (about 31 U.S. cents) per share.
This will reduce Huijin’s CCB stake to 65.4% while boost Bank of America’s share to 10.75%, or 25.1 billion H-shares, according to the announcement.
Without CCB’s written agreement, the shares purchased under the option may not be sold until Aug. 29, 2011.
The Bank of America planned to finish the transaction on June 5, under an agreement it signed in 2005 with Central Huijin Investment, an investment arm of the government.
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