November 18, 2016 / 11:20 AM / a year ago

Deutsche Bank says sells China's Hua Xia Bank stake for $3.37 billion

SHANGHAI (Reuters) - Deutsche Bank (DBKGn.DE) said on Friday it has sold its 20 percent stake in Chinese lender Hua Xia Bank (600015.SS) for a total sum of around 23.2 billion yuan ($3.37 billion) to PICC Property and Casualty Co (2328.HK).

A woman speaks on her mobile phone as she walks past a Hua Xia Bank branch in Shanghai, China, October 9, 2015. REUTERS/Aly Song

The consideration for the shares is at the lower end of the 23 to 25.7 billion yuan range Deutsche was hoping to get when the sale was first announced late last year.

The 23.2 billion yuan includes dividends paid to Deutsche Bank earlier this year. A Deutsche Bank spokeswoman confirmed the stake transfer to PICC Property & Casualty and the sale price in an emailed statement to Reuters.

PICC said in a separate statement posted on the Hong Kong stock exchange that it paid 22.444 billion yuan ($3.26 billion) for the shares.

Separately, Beijing-based Hua Xia Bank said on Friday it has terminated a credit card cooperation agreement and other long-term strategic plans with Deutsche following the stake sale.

    The Chinese bank added that it plans to set up a consumer finance company with registered capital of 500 million yuan.

    Deutsche Bank said earlier this month the stake sale received regulatory approval. Germany’s largest lender had said in September it would fight a $14 billion demand from the U.S. Department of Justice to settle claims it missold mortgage-backed securities, a shock bill that raised questions about its future.

    Reporting by Engen Tham and Matthew Miller in Beijing; Editing by Muralikumar Anantharaman

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