Oversea-Chinese Banking Corp (OCBC), will spend around CNY1.8 billion ($298 million) to buy new shares in Chinese affiliate Bank of Ningbo Co to help the latter boost its capital. OCBC is the second-largest lender in Southeast Asia, wrote Bloomberg.
As part of a private placement, OCBC will up its stake in the Shenzhen-listed bank from 15.34% to 20%. The Singapore-based lender announced this through a statement made to the Shenzhen Stock Exchange today, the report said.
The share subscription is expected to close in the third quarter of 2014. The move comes as OCBC eyes an expansion in China, the report added.
Bank of Ningbo eyes a CNY3.2-billion private placement to two of its biggest stakeholders, Ningbo Development & Investment Group Co and OCBC. This move is also aimed to boost its capital, the Chinese bank said in a statement today, the report explained.
Under the terms of the transaction, OCBC will purchase a maximum of 207.5 million shares and will also subscribe 158.5 million shares at CNY8.85 apiece, Bloomberg reported.
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