Bank of America (BoA) sold one-third of its stake in China Construction Bank (CCB) on Tuesday for US$7.3 billion, the Wall Street Journal reported. The shares, which amounted to about a 5.7% stake in the Chinese lender, were sold to a consortium of Asian investors comprised of Temasek Holdings, Singapore’s sovereign wealth fund, China Life Insurance and private equity firm Hopu Investment Management. One source told the paper that China Life Insurance took the largest portion of the shares. Temasek increased its existing 5.7% stake in CCB; Hopu is a new investor. The shares were sold at US$0.54, representing a 14% discount from CCB’s Monday closing price. BoA needs the funds to meet the US$34 billion in new capital requirements mandated by the US government as part of its plan to shore up the banking system. The remainder of BoA’s shares in CCB is locked until 2011.
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