Commonwealth Bank has entered into a binding agreement to sell a 10 per cent shareholding in Bank of Hangzhou (HZB) to Hangzhou Urban Construction and Investment Group and Hangzhou Communications Investment Group for $1.8 billion.
CBA will retain a 5.57 per cent shareholding in the bank until at least February 2025.
“CBA is pleased to have played a meaningful role in HZB’s development since our original investment in 2005. Our collaboration has seen HZB become a significant player in retail, wealth management and commercial banking across the Yangtze Delta region,” said CBA chief executive Matt Comyn.
“The reallocation of part of our shareholding to local partners will support the further expansion of HZB. At the same time, the partial sale of our shareholding is consistent with our strategy to focus on our core banking business in Australia and New Zealand.
“Our ongoing shareholding in HZB following completion of the transaction will enable us to continue to support its development as one of China’s leading city commercial banks, and complement our relationships in the region.”