* CEO says right time to sell as executes on strategic agenda
* Deutsche Bank is slashing jobs, sacrificing dividends
* Sale will boost CET1 ratio by 0.3-0.4 percentage points
FRANKFURT, Dec 28 (Reuters) - Deutsche Bank has agreed to sell its 20 percent stake in China’s Hua Xia Bank to PICC Property and Casualty Co for up to 3.7 billion euros ($4.1 billion) as part of an overhaul of Germany’s biggest lender.
“As we execute on Deutsche Bank’s strategic agenda, now is the right time for us to sell this investment,” Deutsche Bank Chief Executive John Cryan said in a statement on Monday.
Deutsche Bank has announced plans to slash 15,000 jobs, shed businesses employing some 20,000 staff and sacrifice dividends for two years as it seeks to bolster its finances and retain money to pay for sins of the past.
The sale of the stake in Hua Xia will boost Deutsche Bank’s Common Equity Tier 1 capital ratio as of Sept. 30 by about 0.3 to 0.4 percentage points from 11.5 percent, the lender said.
The level of improvement will depend on the final purchase price for the stake in Hua Xia, which Deutsche Bank said would be between 23.0 billion and 25.7 billion renminbi ($3.6-4.0 billion), or 3.2 billion to 3.7 billion euros at current exchange rates.
($1 = 0.9123 euros)
$1 = 6.4871 Chinese yuan renminbi Reporting by Maria Sheahan; Editing by Georgina Prodhan
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