OCBC Bank subscribes for new shares in China's Ningbo Bank

OCBC Bank has agreed to take up 207,545,680 new shares in China's Bank of Ningbo. -- FILE PHOTO: BLOOMBERG
OCBC Bank has agreed to take up 207,545,680 new shares in China's Bank of Ningbo. -- FILE PHOTO: BLOOMBERG

OCBC Bank has agreed to take up 207,545,680 new shares in China's Bank of Ningbo.

The total deal is worth RMB1.8 billion, or S$383 million, OCBC said Tuesday morning. The funds will come from the bank's internal resources.

The proposed share subscription is subject to regulatory approvals in China as well as Bank of Ningbo shareholders' approval and is expected to be completed in the third quarter of 2014.

The subscription will raise OCBC's stake in Bank of Ningbo from the current 15.34 per cent to 20 per cent.

OCBC is separately in talks with Bank of America and HSBC to finance its bid for Hong Kong's Wing Hang Bank, earlier reports from Bloomberg have said, quoting sources.

OCBC will then later sell shares to help repay the short-term loan.

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