bbva-increases-stake-in-citic-group

BBVA increases stake in Citic group

The Spanish bank pays $1.24 billion to buy an additional 15% of Citic Holdings and a further 5% in Citic Bank and makes a delisting of Citic Holdings a condition of the deal.

Banco Bilbao Vizcaya Argentaria BBVA, SpainÆs second largest bank, will pay Ç800 million $1.24 billion to increase its stake in Citic International Financial Holdings CIFH to 30% and in China Citic Bank to 10.07%. BBVA has also negotiated a two-year call option to buy another 5% of Citic Bank to increase its total holding to 15%. Further financial details of the deal were not disclosed.

ôThe transaction places BBVA in an unbeatable position to leverage the tremendous growth potential inherent in the Chinese banking business, creating value for its shareholders, in a deal that is accretive from the outset,ö says BBVA in a written statement.

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