Bank of America sells stake in China Construction Bank
Bank of America is selling half its stake in China Construction Bank, the world's second-biggest lender by market value.
Bank of America's sale of more than 13 billion shares to a group of investors, in a private transaction, nets about $3.3 billion for the U.S. bank, The Street reports.
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The sale of CCB shares for a total price of $8.3 billion is the latest in a string of assets the North Carolina-based bank has been selling off in an effort to comply with international capital standards, The Street says.
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Bank of America, the biggest U.S. lender, will retain a 5 percent stake in the Chinese bank, Nasdaq says.
The partnership has been "mutually beneficial," Bank of America CEO Brian Moynihan said in a statement, Bloomberg reports.
Shares in CCB jumped after the U.S. bank said it would keep a 5 percent stake. CCB shares were heading for their biggest two-day gain in more than two years.
Chief financial officer Bruce Thompson said in a press release that the "sale of approximately half of our shares of CCB stock is expected to generate about $3.5 billion in additional Tier 1 common capital and reduce our risk-weighted assets by $7.3 billion under Basel I.".
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