SHANGHAI (Reuters) - Bank of America (BAC.N) is likely to raise its stake in China Construction Bank (0939.HK) soon, paying about 2.46 yuan ($0.36) a share, or 1.2 times the Chinese lender’s book value, Caijing magazine reported on Friday, citing unidentified sources.
Construction Bank has been asked by its state parent Central Huijin to audit its third quarter results under international accounting standards to pave the way for the planned share purchase, said Caijing, an influential Chinese-language publication.
Caijing did not say how many shares Bank of America planned to buy. Construction Bank, which is about 11 percent owned by Bank of America, rose 3.46 percent to HK$4.19 ($0.54) in early trading in Hong Kong.
Construction Bank’s net asset per share jumped 13.26 percent from a year earlier to 2.05 yuan during the first nine months, according to the lender’s unaudited third quarter results.
Strategic investor Bank of America has the option to increase its stake in Construction Bank at a price equal to 1.2 times the Chinese lender’s book value, Caijing reported.
Reporting by Samuel Shen, Editing by Jacqueline Wong