Standard Bank Group Ltd announced yesterday that it would sell a 20 percent stake to Industrial and Commercial Bank of China Ltd, or ICBC. In what will be China's largest overseas investment, the shares are going for 36.7 billion rand, or 5.46 billion USD.
More than 95 percent of Standard Bank's shareholders voted in favor of the deal, said a Bloomberg report. The report cited lawyer Vincent Maleka and chairman Derek Cooper, who chaired the shareholder meeting in Johannesburg yesterday.
ICBC and Standard Bank agreed earlier that the former would take 10 percent of the new shares issued by the latter, and buy another 10 percent from shareholders.
Wang Zhenning, spokesman for ICBC, spoke with China Daily yesterday. He said, "We are very glad with the results," adding that the bank's shareholders will vote on the deal on December 13. He declined to elaborate.
ICBC, the world's largest bank by market value, is paying 120.29 rand, or 18.27 USD, per share in cash. That is 14 percent above Standard Bank's share price on October 22, the day before the company said it was in talks.
The sale is expected to fund Standard Bank expansion in South Africa. It owns 951 branches in 18 African countries and over 100 outside the continent.
ICBC chairman Jiang Jianqing spoke to a media conference in October. He said the sale will also help develop the bank’s overseas business. ICBC is targeting an eventual rise to 10 percent from the current 3 percent, especially in emerging markets.
Jiang said that the partnership with Standard Bank will help ICBC develop a comprehensive business model in addition to retail banking, as more than half of Standard Bank's profits come from non-interest income.
"We believe Standard Bank is an ideal partner for us," Jiang said. "On the one hand, trade between the two countries is booming, which will bring greater business for us, and on the other, the bank itself is a market leader in Africa and will bring us financial benefits."
Trade between China and the African continent swelled 40 percent last year to 55.5 billion USD, making China Africa's third largest trading partner.
Questions:
1.What percentage of Standard Bank's shareholders voted for the deal with ICBC?
2.How many branches does Standard Bank own throughout Africa?
3.By what percentage did trade between Africa and China grow last year?
Answers:
1.95 percent.
2.951.
3.40 percent.
（英语点津 Celene 编辑）
About the broadcaster:
Jonathan Stewart is a media and journalism expert from the United States with four years of experience as a writer and instructor. He accepted a foreign expert position with chinadaily.com.cn in June 2007 following the completion of his Master of Arts degree in International Relations and Comparative Politics.
