ICBC buys 70% stake in Bank of East Asia in Canada 80.25 million

On the evening of June 4, ICBC and the Bank of East Asia agreed on a deal to buy and sell the shares of the Bank of East Asia and East Asia Financial Holdings Limited, and ICBC will pay the Bank of East Asia $80.25 million for a 70% per cent stake in the Bank of East Asia. According to the agreement signed by the two sides, ICBC will pay the Bank of East Asia 80.25 million Canadian dollar (about 73 million U.S. dollars) on the price, the acquisition of 70% of the Canadian Bank of East Asia, East Asian banks hold the remaining 30% of the equity. After a year of trading, ICBC has a buy option to increase its stake to 80% per cent, and the Bank of East Asia has a sell option after a year of completion of the deal to transfer its remaining shares to ICBC. At the same time, ICBC sold East Asian banks its 75% per cent stake in East Asia, trading at a price of HK $372 million (about $48 million). These two transactions are mutually conditional.　　After the completion of the two transactions, ICBC and the Bank of East Asia will cooperate in the operation and management of the Bank of East Asia, while East Asia will become a wholly owned subsidiary of the Bank. "The two deals are mutually beneficial options for both sides," he said. "The acquisition of a 70% per cent stake in the Bank of East Asia will enable ICBC to obtain Canadian banking licences and client resources to provide a good basis for further expansion of North America's operations and networks, while selling industrial and commercial East Asia will benefit ICBC's institutional layout and business integration in Hong Kong," said Mr Jiang Jianqing, Focus on the development of investment banking in Hong Kong. Dr David Li, chairman and chief executive of Bank of East Asia, said: "We are confident that we can further strengthen our financial services and enhance our ability to provide diversified services in Hong Kong through the two transactions." The Bank of East Asia and ICBC have maintained good business relations and will continue to develop strategic partnerships to provide better financial services to customers worldwide.　　The final completion of the two transactions will also be approved by the Ministry of Finance of the People's Republic of China, the Chinese Banking Regulatory Commission, the Hong Kong Monetary Authority, the Hong Kong Securities and Futures Commission, the Canadian Ministry of Finance and the Canadian Ministry of Industry's Fair competition authority. The Bank of East Asia of Canada is a wholly owned subsidiary of the Bank of East Asia and has been providing services to Canadian clients since 1991. At present, the bank has 6 branches in Canada, located in Toronto and Vancouver, which provide comprehensive banking products and services for Chinese communities in both places, including retail banking, corporate banking and trade finance services.　　On December 31, 2008, the Bank of East Asia, Canada, had total assets of $556 million, total loans of 444 million Canadian dollars and total deposits of $482 million. Industrial and Commercial East Asia is ICBC and Bank of East Asia in 1998 through the acquisition of Westminster Securities Asia business establishment. Industrial and commercial East Asia registered in British Virgin Is., the current ICBC and the Bank of East Asia respectively hold their 75% and 25% of the equity. Industrial and Commercial East Asia mainly provides securities brokerage, underwriting, margin financing, futures and options contract transactions and other services. In 2008 year December 31, the net assets of East Asia are HK $451 million. (Snow Ting)