(Adds details from filing and background about midsize bank
SAO PAULO Oct 31 Brazilian mid-sized lender
Banco Industrial e Comercial SA said on Thursday it
will sell 72 percent of its capital to China Construction Bank
(CCB) for 1.62 billion reais ($725 million) which could lead to
a delisting of the Brazilian bank.
Shares of BicBanco, as the bank is known, have risen 127
percent to 7.50 reais since early August. Soon after that,
rumors circulated in the market that the principal shareholders
of the Brazilian bank might sell a controlling stake.
In the leadup to August, BicBanco's bond and share prices
had declined sharply on market concerns that its financial
position was eroding due to bad debt.
BicBanco has a market value of 1.7 billion reais ($778
If the deal is approved by regulators, the purchase would be
the first of a Brazilian bank by one of China's big four state
lenders. It would also be the biggest Chinese bank deal in Latin
The Sao Paulo-based bank, which specializes in corporate
credit, is being advised by Citigroup Inc.
In July, Moody's Investors Service said BicBanco's
profitability and asset quality have been under pressure
following consecutive quarters of credit losses from
(Reporting by Reese Ewing; Editing by Gary Hill and Ken Wills)