BofA sold CCB shares to Temasek, Chinese institutions

It is unclear how many Chinese groups were involved in this syndicate, the Financial Times reported, nor how the shares were divided. However, Temasek, which has been the bank's second-largest stakeholder with approximately 7% of CCB's shares before this latest BofA sale, is expected to hold some of the shares through its Seatown alternative investment subsidiary and its Fullerton fund management arm, the newspaper added.

In August, BofA sold a 5% stake in CCB to a consortium that included Temasek, China's State Administration of Foreign Exchange, the National Social Security Fund and CITIC Securities for $8.3 billion, leaving BofA with approximately 5% of CCB. That move came one month after Temasek reduced its holdings in both CCB and Bank of China to scale back on its financial sector exposure. It raised around $3.6 billion in the process, of which more than $1 billion came from CCB shares, which sold at a higher price than BofA's selling price per share in August, the FT noted at the time.

In BofA's latest divestment, the US bank claimed profit of approximately $1.8 billion on the transaction, which leaves the bank with a 1% in CCB. The sale comes as BofA is looking to bolster its capital reserves to comply with regulations.

BofA paid $3 billion for a 9.9% stake in CCB ahead of the bank's IPO in 2005.

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• Topics
• Greater China
• Financing
• Exits
• China
• Temasek Holdings
• Bank of America Merrill Lynch
• Exit
• Financial Services