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CCB announces acquisition of Bank of America (Asia) Ltd
China Construction Bank (CCB) on Thursday inked an agreement with Bank of
America (BOA) to acquire 100 percent of equity interest of Bank of America
(Asia) limited, the wholly-owned subsidiary of BOA in Hong Kong.
Payable
in cash, the total consideration of the acquisition is 9.71 billion HK dollars
(about 1.24 billion U.S. dollars), representing nearly 1.32 times of the book
net assets of 7.38 billion HK dollars (about 949 million U.S. dollars) of BOC
(Asia).
The acquisition is subject to the approvals of the Chinese and overseas
authorities and CCB shareholders in a general meeting.
Officials from
CCB and BOA said that they expected the acquisition will be completed before the
end of 2006.
"Bank of America (Asia) shows little overlapping with CCB
business in Hong Kong.
Therefore, it is a very appropriate choice of
acquisition for us," said Zhang Jianguo, the newly appointed CCB President.
After the acquisition, the business scale of CCB in Hong Kong will be
more than doubled, and the total amount of customer loans will also jump from
16th to the 9th highest in the Hong Kong banking industry, said Fan Yifei, vice
president of CCB.
"The acquisition will immediately enhance the per
share earnings of CCB," he noted.
CCB announces acquisition of Bank of America (Asia) Ltd(Over)
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