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CBA sells $1.8bn stake in Chinese bank
CBA has agreed to sell a $1.8 billion stake in a Chinese bank.
CBA sells $1.8bn stake in Chinese bank
Commonwealth Bank of Australia announced on Tuesday that it has entered into a binding sale agreement to sell a 10 per cent shareholding in Bank of Hangzhou (HZB) to Hangzhou Urban Construction and Investment Group and Hangzhou Communications Investment Group for $1.8 billion.
The bank confirmed in an ASX listing that it will retain a 5.57 per cent shareholding in HZB until at least February 2025.
“CBA is pleased to have played a meaningful role in HZB’s development since our original investment in 2005. Our collaboration has seen HZB become a significant player in retail, wealth management and commercial banking across the Yangtze Delta region. The reallocation of part of our shareholding to local partners will support the further expansion of HZB,” CBA chief executive officer, Matt Comyn said.
Mr Comyn said the the partial sale of CBA’s shareholding is consistent with its strategy to focus on its core banking business in Australia and New Zealand.
“Our ongoing shareholding in HZB following completion of the transaction will enable us to continue to support its development as one of China’s leading city commercial banks, and complement our relationships in the region.”
The post-tax gain on the sale is estimated at $340 million.
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