China Construction Bank (CCB) said yesterday that it has entered
into a strategic partnership agreement with Singapore's Temasek
Holdings.
The bank and Asia Financial Holdings Pte Ltd (AFH), a
wholly-owned subsidiary of Temasek, signed a definitive strategic
investment agreement on July 1.
Under the agreement, Temasek will invest in CCB through AFH,
which will place US$1 billion into CCB at a planned international
initial public offering (IPO) for CCB. AFH will also purchase
certain existing shares from China SAFE Investments Ltd, subject to
regulatory approval.
In addition, AFH will assist CCB in improving corporate
governance, including the right to nominate suitable candidates for
election to the CCB board of directors. Other areas of
collaboration and support are under discussion.
Temasek is an Asia investment company headquartered in
Singapore. It manages a diversified global portfolio worth US$54
billion.
CCB said the strategic partnership with Temasek demonstrates
that China's banking sector has taken another important step
forward in its reform and improving corporate governance.
(China Daily July 5, 2005)