HONG KONG--Spain's Banco Bilbao Vizcaya Argentaria SA (BBVA) has
cut its stake in China Citic Bank Corp. (0998.HK) to 9.9% from 15%
but it intends to remain a long-term strategic investor, the
Chinese lender said Thursday.
China's seventh-largest lender by assets said BBVA sold around
5.1% of the bank's total shares to Citic Bank's parent, state-owned
Citic Group, which has increased its holding of the bank to 66.95%
from 61.85%. The value of the deal wasn't disclosed in the bank's
announcement.
As part of the share sale, BBVA and Citic Bank agreed to alter
their strategic cooperation agreement to release "relevant
exclusivity obligations" of BBVA in China. Citic Bank didn't
elaborate in its brief statement. BBVA couldn't immediately be
reached for comment.
Spain's second-largest bank by market value after Banco
Santander SA had earlier ramped up its presence in Asia and in 2006
first bought into Citic Bank as a strategic investor, with a 5%
stake. BBVA's stake doubled in June 2008 and it bought an
additional 5% in April 2010.
However, the European debt crisis and a weaker Asian economy
prompted BBVA to slow its Asia growth. In late 2011, the bank laid
off around a third of its global markets staff in Asia in its first
cutback in the region since it launched its Asian expansion drive,
said people familiar with the situation at the time.
China Citic Bank is the domestic banking arm of China's Citic
Group, a financial conglomerate set up in 1979 by the late Vice
President Rong Yiren that operates under the direction of the State
Council, China's cabinet.
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