Bank of America Sells Remaining Stake in China Construction Bank for $1.47B (BAC)
It was reported that Bank of America Corp (BAC) has sold off its remaining $1.47 billion stake in China Construction Bank on Wednesday, which represents about 2 billion shares, or 1% of all of the Chinese bank’s outstanding shares.
Bank of America initially acquired 9% of the Chinese bank in 2005 for about $3 billion. However, the company has gradually reduced its stake. In 2011, Bank of America sold 13.1 billion Construction Bank shares worth about $8.3 billion.
The move comes as foreign institutions, once enamored with the possibility of a lucrative payoff in China, shed investments as the initial optimism and euphoria wears off. In May, Goldman Sachs sold its remaining stake in China’s biggest commercial lender, state-owned Industrial & Commercial Bank of China Ltd., for $1.1 billion.
China Construction Bank is one of China’s four major state-owned commercial lenders.
Despite the sell off, Bank of American and China Construction Bank will continue their strategic assistance agreement, which was recently extended to 2016.
Bank of America Corp shares were down 5 cents, or 0.35%, during pre-market trading on Wednesday. The stock is up 22.74% year-to-date.
The Bottom Line
Shares of Bank of America (BAC) offer a dividend yield of 0.28% based on Tuesday’s closing price of $14.25 and the company’s annualized dividend payout of 4 cents per share.
Bank of America Corp (BAC) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.1 out of 5 stars.
Get FREE Dividend Tips, Updates & MoreWe respect your privacy
- Powerful dividend insights sent every weekday morning
- Gain instant access to actionable investing tips
- Strategically grow your portfolio’s profitability