Bank of America is likely to raise its stake in China Construction Bank soon, paying about 2.46 yuan ($0.36) a share, or 1.2 times the Chinese lender’s book value, Caijing magazine reported on Friday, citing unidentified sources.
Construction Bank has been asked by its state parent Central Huijin to audit its Q3 results under international accounting standards to pave the way for the planned share purchase, said Caijing, an influential Chinese-language publication. Caijing did not say how many shares Bank of America planned to buy. Construction Bank, which is about 11% owned by Bank of America, rose 3.46% to HK$4.19 ($0.54) in early trading in Hong Kong.
Construction Bank’s net asset per share jumped 13.26% from a year earlier to CNY2.05 during the first nine months, according to the lender’s unaudited Q3 results. Strategic investor Bank of America has the option to increase its stake in Construction Bank at a price equal to 1.2 times the Chinese lender’s book value, Caijing reported. (Reuters)