BBVA has agreed to sell 4.9% of China CITIC Bank Corporation Limited (CNCB) for HK$13.136 billion, equivalent to about €1.46 billion. The operation generates a capital gain of about €400 million and improves the Common Equity Tier 1 fully loaded capital ratio of the BBVA Group by more than 20 basis points.
BBVA has signed today an agreement to sell 4.9% of CNCB to UBS AG, London Branch (UBS), for HK$13.136 billion, or HK$5.73 per share, in line with market prices. Also, UBS has entered into transactions pursuant to which the ultimate economic benefit of ownership of such CNCB shares will be transferred to Xinhu Zhongbao Co., Ltd., one of the largest real estate companies in China. Following the closing of the transaction, estimated for the first quarter of 2015, BBVA´s stake in CNCB will fall to 4.7%.
The transaction will have a net positive impact in the P&L account of BBVA of about €400 million, and it will improve the Common Equity Tier 1 fully loaded capital ratio by more than 20 basis points, equivalent to about €800 million.