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BOC Hong Kong signs pact to sell stake in Chiyu Bank for $992 mln
December 22, 2016 / 3:29 PM / 9 months ago

BOC Hong Kong signs pact to sell stake in Chiyu Bank for $992 mln

SINGAPORE, Dec 22 (Reuters) - BOC Hong Kong Holdings Ltd , a unit of Bank of China Ltd, has agreed to sell a majority stake in Chiyu Bank for HK$7.7 billion ($992 million), as part of its plan to invest in new markets mainly in Southeast Asia.

BOC Hong Kong plans to sell 2.11 million shares in Hong Kong lender Chiyu Bank -- a 70.5 percent stake -- to Xiamen International Investment Ltd, a unit of China’s Xiamen International Bank, and the Committee of Jimei Schools in China.

Xiamen International has agreed to buy a stake of around 64 percent, while the Committee of Jimei Schools will buy 6.2 percent, BOC Hong Kong and its Chinese parent said in a joint filing to the stock exchange.

The stake sale is a strategic move as part of BOC Hong Kong’s “long-term development plan”, which includes the expansion of its ASEAN (the Association of South East Asian Nations) operations, the statement said.

BOC Hong Kong earlier this year also completed the sale of its stake in Nanyang Commercial Bank in the Asian financial center for HK$68 billion ($8.76 billion) as part of that strategy.

$1 = 7.7635 Hong Kong dollars Reporting by Lee Chyen Yee; Writing by Sumeet Chatterjee; Editing by Keith Weir

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