BBVA to Sell $1.7 Billion Stake in CNCB to Chinese Developer
(Bloomberg) — Banco Bilbao Vizcaya Argentaria SA, Spain’s second-biggest bank, agreed to sell 4.9 percent of China CITIC Bank Corp. for about 1.46 billion euros ($1.65 billion) with the final buyer being property company Xinhu Zhongbao Co. Ltd.
UBS AG’s London branch will buy the shares at 5.73 Hong Kong dollars per share ($0.74), BBVA said in a filing to regulators today. UBS has signed agreements under which the shares will be transferred to a third party with the final owner being Xinhu, the Bilbao, Spain-based bank said.
BBVA will book a net gain of about 400 million euros from the sale and boost its fully-loaded Common Equity Tier 1 ratio by more than 20 basis points, the bank said. BBVA will own 4.7 percent of CNCB after the sale.
To contact the reporter on this story: Charles Penty in Madrid at cpenty@bloomberg.net To contact the editors responsible for this story: Vidya Root at vroot@bloomberg.net Ben Sills
