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Bank of China (Hong Kong) to divest Chiyu Banking Corp. stake in HK$7.69B deal

Bank of China Ltd. indirect unit Bank of China (Hong Kong) Ltd. entered into an agreement to sell a 70.49% stake in Hong Kong-based Chiyu Banking Corp. Ltd. under a HK$7.69 billion deal.

The BOC Hong Kong (Holdings) Ltd. unit will sell 2,114,773 shares in Chiyu Banking Corp. Xiamen International Investment Ltd. will buy a 64.31% stake in the target, while the Committee of Jimei Schools will purchase a 6.18% stake.

As part of the deal, Bank of China (Hong Kong) will receive a performance bond of up to HK$350 million.

The disposal will streamline Bank of China (Hong Kong)'s corporate structure and reinforce its brand in the Hong Kong banking market.

Upon completion of the transaction, Chiyu Banking Corp. will cease to be a subsidiary of Bank of China, BOC Hong Kong (Holdings) and Bank of China (Hong Kong).