As early as June 2005, CCB, as the first state-owned commercial bank to eat crabs, introduced Bank of America as a strategic investor. Bank of America invested US$ 2.5 billion in the first phase, subscribed 654.38+07.48 billion H shares to central huijin, and then subscribed US$ 500 million for the initial public offering of CCB H shares, for a total of US$ 3 billion to acquire 9% shares of CCB. At the same time, in the agreement signed with Huijin, Bank of America also reserved a very special bargaining option, that is, in the next few years, Bank of America can increase its shareholding in CCB to 19.9%, and the exercise price is 1.2 times of the latest audited net assets per share of CCB and1.07655 of the IPO price of H shares.
After that, Bank of America exercised twice. The first time was to buy 6 billion H shares from Huijin at an exercise price of HK$ 2.42 per share in May 2008, and the second time was to buy1195.8 billion H shares at HK$ 2.8 in October of the same year.
In fact, the 19 1 100 million CCB H shares bought by Bank of America for the first time were officially lifted in June 2008. At that time, the subprime mortgage crisis broke out, and the market thought that Bank of America would significantly reduce its holdings of CCB to save itself. However, due to the low share price of CCB at that time (about HK$ 2.5/share), Bank of America did not reduce its holdings, but exercised against the trend and bought 654.38+0.958 billion H shares from Huijin. The shareholding ratio increased from 654.38+00.75% to 654.38+09. 13%, which was close to the upper limit. At that time, the audited net assets per share of CCB was RMB 2.05, and the exercise price of Bank of America was RMB 2.46 (about HK$ 2.80).
On June 5438+ 10, 2009, Bank of America reduced its shareholding in CCB for the first time, which caused a huge market shock. On the day of the news, the share price of H shares of CCB fell by 8.76%. At that time, the subprime mortgage crisis was spreading, and UBS and Royal Bank of Scotland were also under pressure to sell 6.8 billion H shares of Bank of China. Bank of America has just completed the acquisition of Merrill Lynch, waiting for government assistance to replenish its working capital, so it placed 5.62 billion shares of CCB to institutional investors at a price of HK$ 3.92 per share, which is 12% lower than the market price of HK$ 4.45 per share.
The biggest reduction of BofA's holdings occurred in May 2009, when the results of the stress test conducted by the US government on 19 big banks were announced, and BofA failed to pass, so it needed to replenish about 30 billion US dollars of capital, so it sold CCB shares again to realize income. The current reduction price is HK$ 4.2/share, with a discount rate of 65,438+04.3%. The winners are Hopu Fund, China Life Insurance, BOC International and Temasek. Bank of America cashed in $7.3 billion in this round of reduction.
Last June, 5438+065438+ 10, when CCB A+H issued shares, American Bank, which was mired in losses, could not participate in the rights issue and transferred 179 billion shares to Temasek. Bank of America did not disclose the transfer price of the rights issue option, but the market speculated that Bank of America may make a profit of about 730 million US dollars, because the rights issue price of CCB H shares is about 40% lower than the market price.
Coupled with the latest reduction, Bank of America reduced its holdings five times, and accumulated cash of $654.38+09.4 billion (before tax). At present, the market value of the remaining 5% CCB shares is about 965.438+04 billion US dollars. In addition, during the five years from 2005 to 20 10, Bank of America earned a lot of dividend income. According to the reporter of "China Business News", the dividend income (before tax) of Bank of America holding CCB shares totaled 3.223 billion US dollars. The total income of Bank of America's investment in CCB is USD 365,438+EUR 760 million. After deducting its investment cost of $65,438+$96,543.8 million, the profit of Bank of America is about $65,438+$96 million.