Dec. 6, 2012 (China Knowledge) - HSBC Holdings Plc<0005
>, the biggest foreign bank in mainland China, has said it agrees to sell all 15.57% stake in Ping An Insurance (Group) Co<601318
> to the Charoen Pokphand Group, a Thai multi-national conglomerate, with contract value of HK$72.74 billion.
According to a statement filed with Hong Kong Stock Exchange
, the contract value is equivalent to HK$59 apiece, which represented a 2.3% premium over the closing price of HK$57.65 on Tuesday.
Stuart Gulliver, Chief executive of HSBC Group, said the deal is a further progress in the execution of the Group’s strategy.
China is a very imported market for the HSBC, that will strengthen the extension of our own business network and build a long-term strategic banking partnership with the Bank of Communications <601328
>, Stuart Gulliver added.
As of the end of September 2012, HSBC group’s core tier 1 capital ratio stood at 11.7%, while its total capital ratio was 15.6%. The transaction will raise approximately 0.5% in its core tier 1 capital ratio and nearly 1.0% in the total capital ratio.