Deutsche Bank has signed a binding agreement to increase its equity stake in China-based Hua Xia Bank from 17.12% of issued capital to 19.99%, the maximum single foreign ownership level as permitted by Chinese regulations.
The agreement is to subscribe to newly issued shares in Hua Xia Bank for a total subscription price of up to approximately EUR636m. Deutsche Bank’s subscription is part of a private placement of Hua Xia Bank shares to its three largest shareholders with an overall issuance value of up to approximately EUR2.3bn.
Deutsche Bank made its first equity investment in Hua Xia Bank in May 2006 and has two seats on the Hua Xia Bank board.
Rainer Neske, head of private and business clients and a member of management board at Deutsche Bank, said: “The long-term cooperation with Hua Xia Bank is the spearhead of our PBC strategy in China. Hua Xia is a successful player in China and has created substantial value in this important PBC market in Asia. We are proud to continue this fruitful and reliable partnership in the future.”