Frankfurt: Deutsche Bank, Germany's biggest lender, said Monday it has agreed to sell its stake of nearly 20 percent in China's Hua Xia for more than three billion euros ($3.3 billion).
"Deutsche Bank has agreed to sell its entire 19.99-percent stake in Hua Xia Bank to PICC Property and Casualty Company Limited for a consideration of 23.0-25.7 billion yuan ... or approximately 3.2-3.7 billion euros based on current exchange rates," the German group said in a statement.
The completion of the transaction would be subject to customary closing conditions and regulatory approvals including that of the China Banking Regulatory Commission.
The sale would have a "positive financial impact" and boost its capital ratio, Deutsche Bank said.
In October, Deutsche Bank said that massive writedowns on its stake in Hua Xia had helped push it into the red in the third quarter.
"We made our first equity investment in Hua Xia Bank in 2006. Since then, we have been pleased with Hua Xia Bank's development and performance," said co-chief executive John Cryan.
However, "now is the right time for us to sell this investment," Cryan continued.
"China remains a key growth market for us. We look forward to working with Hua Xia Bank and PICC Property and Casualty Company Limited on the transition of our investment," he added.
AFP
