China Construction Bank buys control of Brazil lender
Construction Bank pays HK$5.7 billion for 72pc stake in BicBanco, stepping up a global push to meet the overseas demand of mainland firms
China Construction Bank, the country's second-biggest lender by assets, agreed to pay 1.62 billion reais (HK$5.7 billion) for a majority stake in Brazil's Banco Industrial e Comercial.
The 72 per cent stake would include 157.4 million voting shares and 24.7 million preferred shares, which CCB planned to buy for 8.9017 reais each, BicBanco said in a filing on Thursday.
The price values the Sao Paulo-based bank at 1.16 times book value as at June 30.
CCB will make an offer to buy the remaining stock within 30 days after completion of the deal, which needs to be approved by regulators in Brazil, China and the Cayman Islands.
Acquiring a lender was the easiest way for Beijing-based CCB to obtain a licence in Brazil as it followed customers to that country, a person with direct knowledge of the matter said earlier this week.
China and Brazil agreed in March to establish a US$30 billion currency swap line, and China National Petroleum Corp won the rights last week to help develop Brazil's biggest oil discovery in the Libra field.