CITIC Bank brings in China National Tobacco as a shareholder in a RMB 12 billion deal

On the evening of October 29, CITIC Bank Co., Ltd. (CITIC Bank, 601998.SH; 00998.HK) announced that it would privately issue shares to China National Tobacco Corporation, raising a total of no more than RMB 11,918,455,941.48.    

According to the plan, CITIC Bank intends to privately issue no more than 2.462 billion A-shares at an issue price of 4.84 yuan/share (note: a premium of 3.86% over the market price), raising no more than 11.918 billion yuan. China National Tobacco Corporation is the sole subscriber, intending to fully subscribe in cash and committing to a lock-up period of 36 months. CITIC Bank plans to use all raised funds, after deducting related issuance costs, to replenish its core Tier 1 capital.      

The announcement stated that the relevant proposal for this private placement of A-shares has been approved by the 30th meeting of the third board of directors of the company and is subject to approval by the company's shareholders' meeting. Currently, this private placement of shares still requires approval from regulatory agencies such as the China Banking Regulatory Commission and the China Securities Regulatory Commission before it can be implemented. If this private placement is successfully implemented, China National Tobacco will hold 5% of CITIC Bank's total share capital.