Temasek Purchases Bank of America Share of China Construction Rights Offer
Bank of America, Construction Bank’s largest private shareholder, won’t participate in the offering, two people with knowledge of the matter said, declining to be identified. Fang, a Singapore-based spokesman for Temasek, didn’t say how much the company’s stake in Construction Bank will increase as a result of the transaction.
Beijing-based Construction Bank, the world’s second-largest lender by market value, said on Nov. 1 it will offer existing investors 0.7 share for every 10 held at 3.77 yuan each in Shanghai and HK$4.38 in Hong Kong.
Bank of America owns 25.58 billion shares in Construction Bank, or 10.95 percent, trailing only the Chinese government’s 57 percent stake, Construction Bank said last week. Temasek is the bank’s third-biggest investor with a 5.65 percent stake.
Central Huijin Investment Co., which owns stock in Construction Bank on behalf of the Chinese government, has committed to participating in the rights offer.
Reuters reported earlier today that Temasek will purchase Bank of America’s rights, citing people it didn’t identify.
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