Why Temasek Holdings Pte bought Bank of America Share of China Construction Bank (CCB)?
Singapore state investment firm Temasek Holdings Pte (TEM) bought Bank of America’s (BAC) entire entitlement in China’s No. 2 lender China Construction Bank’s (0939.HK) $9.2 billion rights issue. China Construction Bank (CCB) plans to raise up to US$9.2 billion in Asia’s biggest rights issue outside Japan. Bank of America (BAC), China Construction Bank’s second largest shareholder with about 11 per cent, while Temasek, the world’s second-largest bank by market capitalization, has about 6 percent. Bank of America owns 25.58 billion shares in Construction Bank, or 10.95 percent, trailing only the Chinese government’s 57 percent stake, Construction Bank said last week. Temasek is the bank’s third-biggest investor with a 5.65 percent stake. Central Huijin Investment Co., which owns stock in Construction Bank on behalf of the Chinese government, has committed to participating in the rights offer.
