CCB Said to Be Close to Deal to Buy Brazil’s BicBanco By Bloomberg News Cristiane Lucchesi & Dakin Campbell --(Oct 30, 2013 5:43 AM GMT+0800) [請分享這Post /給LIKE。您的支持是重要的.謝謝!] China Construction Bank Corp. (939), the nation’s second-biggest lender by assets, is close to reaching a deal to acquire Brazil’s Banco Industrial & Comercial SA, according to a person with direct knowledge of the matter. BicBanco (BICB4), as the Sao Paulo-based lender is known, will likely fetch a price higher than its current market value of 1.67 billion reais ($764 million), the person said, asking not to be identified because the talks are private. Under the agreement, China Construction would buy the 70 percent stake owned by the controlling shareholders, the Menezes de Bezerra family, and do a tender offer to acquire the rest, the person said. China Construction is trying to capitalize on the growing presence of Chinese companies in Brazil, and acquiring a bank is the easiest way for the Beijing-based lender to obtain a license there, the person said. State companies including China National Petroleum Corp. and Cnooc Ltd. won a concession to develop Brazil’s biggest oil discovery in the Libra oilfield auction on Oct. 21, partnering with Petroleo Brasileiro SA, Royal Dutch Shell Plc and Total SA. BicBanco hired New York-based Citigroup Inc. (C) to advise on the sale, two people said. Morgan Stanley (MS) is advising China Construction Bank, one of the people said. BicBanco specializes in loans to mid-sized companies, and has total equity of 1.92 billion reais, according to company filings. The bank tightened its lending standards after leverage rose and credit quality deteriorated among small and mid-size companies in 2011 and 2012, analysts at Banco Bradesco BBI SA said in a report in May. Loan Portfolio The bank’s loan book declined 5.7 percent in the second quarter from the first and 4.1 percent from the same period a year earlier, according to company filings. It has total assets of 16.8 billion reais. BicBanco’s deposit ratings were cut to junk in August by Moody’s Investors Service, which said the company’s loan margins are being compressed as it shifts toward lower-risk borrowers. BicBanco said in a statement that controlling shareholders are in talks to sell a stake, and no agreement has been reached. The bank declined to comment further. Rob Julavits, a Citigroup spokesman, declined to comment. Press officials at China Construction in Beijing didn’t return two calls and an e-mail seeking comment. Mary Claire Delaney, a spokeswoman for New York-based Morgan Stanley, declined to comment.
Posted on: Wed, 30 Oct 2013 00:22:11 +0000
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