HSBC: To Buy Bank Of Communications New Shares For HK$13.26 Billion
15 March 2012 - 8:54PM
Dow Jones News
HSBC Holdings PLC (HBC) said Thursday it has agreed to subscribe
to HK$13.26 billion (US$1.71 billion) worth of Bank of
Communications Co.'s (3328.HK) new shares as part of the Chinese
bank's placement to replenish capital.
The U.K.-based banking giant said in a statement it has agreed
to subscribe to 2.36 billion of BoCom's Hong Kong-listed shares at
HK$5.63 each, maintaining HSBC's stake in the state-run lender at
no less than its current 19.03%. HSBC added it will pay for the
subscription from internal resources.
"Maintaining our stake in BoCom reinforces our position as the
leading foreign bank in mainland China and is consistent with our
strategy to deploy capital in faster-growing markets," HSBC Chief
Executive Stuart Gulliver said in the statement.
HSBC first invested in China's fifth largest bank by assets in
August 2004.
-By Fiona Law, Dow Jones Newswires; 852-2802-7002;
fiona.law@dowjones.com