icbc-spends-55-billion-reaching-out-to-africa

ICBC spends $5.5 billion reaching out to Africa

The Chinese bank shells out $5.5 billion for a 20% stake and board representation in South Africa's largest bank, Standard Bank.

Sameera Anand

October 26, 2007

Industrial and Commercial Bank of China will buy 20% of South AfricaÆs Standard Banking Group for $5.5 billion, in a deal which gives the Chinese bank a foothold on a continent emerging as a strategic trading partner for China.

Analysts commented favourably on the benefits that could accrue to ICBC from the expansion of its footprint to Africa, a country where China is looking to develop business as it seeks sources of raw materials.

ICBC will pay R36.7 billion $3.1 billion, translating to a price of R136 per share to Standard Bank shareholders for shares representing 11.1% on an undiluted basis the price represents a 30% premium to the 30-day volume weighted average price...

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