Bank of America Corporation has given notice to China Construction Bank Corporation and SAFE Investment Limited (Huijin) that it intends to exercise part of the option it has to purchase further CCB common shares.
The option would be exercised under an agreement Bank of America has with Huijin reached when Bank of America first invested in CCB in June 2005.
Bank of America intends to purchase 6 billion H-shares on or about 5 June 2008 for approximately HK$2.42 per share under a formula in the agreement.
After the exercise, Bank of America would hold about 25.1 billion H-shares, representing about 10.75% of CCB’s issued shares. Bank of America currently holds about 8.2% of the issued shares.
The 6 billion shares purchased from Huijin using the call option may not be sold until 29 August 2011 without prior consent of CCB. Bank of America has the option to purchase additional shares.