Bank Of America Is Selling 13.1 Billion Shares Of CCB For US$8.3 Billion

This is a very well-flagged possibility that Bank of America (BAC.N) has to sell at last some of its stake in China Construction Bank (939.HK).

Now here comes the breaking news that BAC is selling 13.1 Billion shares of CCB (5% of the shares), generating US$8.3 billion cash proceeds. At would be roughly HK$4.94 per share. In Hong Kong trading, China Construction Bank was closed at HK$5.55 per share, so the selling price here is roughly a 11% discount to the current price. BAC still has 5% of the stake in CCB. The sale will add roughly US$3.6 billion tier I capital.

It is not clear to whom does Bank of America sell the shares to, but I would speculate that the group of buyers may be sovereign wealth funds as some earlier reports suggested.

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About Zarathustra

Zarathustra: Founder and Managing Editor of Also sprach Analyst. Once an analyst, now an investor and entrepreneur. Based in Hong Kong, but Londoner at heart.