China's second largest financial institution in terms of assets, China Construction Bank Corp, had entered into an agreement to pay BRL1.62 billion or USD723 million for majority control over Brazilian bank Banco Industrial & Comercial SA.
The total share value of the purchase is 72% of outstanding shares, which also includes 157.4 million voting shares and 24.7 preferred shares priced at BRL8.9017 per share. This was confirmed in regulatory documentation filed by BicBanco, which is based out of Sao Paulo, Brazil. CCB On the other hand would make an offer to purchase remaining shares of stock within thirty days upon completion of the deal. This would require Brazilian regulatory approval as well as Chinese and Cayman Islands approvals as well.
Under the agreement, CCB would purchase the shares from the Menezes de Bezerra family and then offer to purchase the rest of the shares, according to the source. This would be the easiest way that the Beijing based bank would be able to obtain a license in Brazil, according to the anonymous source who told Bloomberg News early this week.
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