In a deal expected to gain Bank of America Corporation US$750 million, the bank is selling its final stake in China Construction Bank Corporation.
Representing approximately 2 billion shares, or 1 percent of all CCB shares outstanding, Bank of America’s agreement to dispose of the involvement will reportedly not impact the two banks’ strategic assistance agreement that is expected to continue until 2016.
Under the strategic assistance agreement, Bank of America provides advice and assistance to CCB in specified business areas, such as customer service.
The transaction is expected to generate a pretax gain of approximately US$750 million in the third quarter of 2013 for Bank of America.
This gain could reportedly be partially offset by negative fair value option adjustments and debit valuation adjustments.