Deutsche Bank To Sell Entire Stake In Hua Xia Bank For Up To EUR 3.7 Bln

(RTTNews) - German lender Deutsche Bank AG (DB) said it has agreed to sell its entire 19.99 percent stake in Hua Xia Bank to China's PICC Property and Casualty Company Limited (PPCCY.PK, PPCCF.PK) for a consideration of 23.0 billion to 25.7 billion yuan, subject to final price adjustment at closing. The total consideration is equal to about 3.2 billion to 3.7 billion euros, based on current exchange rates.

Deutsche Bank noted that the sale will have a positive financial impact and, on a pro-forma basis, would have improved its Common Equity Tier 1 capital ratio as of 30 September 2015 by about 30 to 40 basis points.

The completion of the transaction is subject to customary closing conditions and regulatory approvals, including that of the China Banking Regulatory Commission.

Marcus Schenck, Chief Financial Officer of Deutsche Bank, said, "We will now work with the regulatory authorities to close this transaction. Upon closing, Deutsche Bank's capital position will be strengthened, and we will have made further progress on the execution of our strategy."