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Temasek and Seatown acquire China Construction Bank shares from Bank of America as part of consortium

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Singapore’s sovereign wealth fund Temasek and its wholly owned hedge fund Seatown Holdings, are part of a consortium including other Chinese investors that this week bought a five per c

Singapore’s sovereign wealth fund Temasek and its wholly owned hedge fund Seatown Holdings, are part of a consortium including other Chinese investors that this week bought a five per cent stake in China Construction Bank Corp from Bank of America reported the Wall Street Journal. Temasek sold 1.5 billion shares in CCB in July raising USD1.5 billion but this new acquisition is likely to boost its holding in the bank: the consortium’s purchase is believed to represent 13.1 billion shares. Selling half its 10 per cent stake in CCB allowed Bank of America to raise USD8.3 billion in cash in what the bank said was a move designed to strengthen its liquidity position and help it meet regulatory standards. It is believed Bank of America will retain a 5 per cent stake in CCB. The giant Chinese bank said that it understood the decision, adding that the two banks will continue to deepen their cooperation in the future and will sign new strategic contracts in the near-term.       

 

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