Singapore banking giant OCBC increases equity stake in China's Bank of Ningbo to 20 per cent.

Oversea-Chinese Banking Corporation, headquartered in Singapore, is increasing its presence in China by subscribing for up to 207,545,680 new ordinary shares in Bank of Ningbo for RMB8.85 per share, it said in a statement. 

The proposed subscription is worth around RMB1.8 billion (approx. $297 million) and will be funded through internal resources. The transaction is still subject to regulatory approvals in China, as well as Bank of Ningbo shareholders' go-ahead, and is expected to be completed by the third quarter of 2014. 

Following the completion of this move, OCBC Bank's aggregate equity stake in the Chinese bank is expected to rise from the current 15.34 per cent to 20 per cent. Bank of Ningbo is listed on the Shenzhen Stock Exchange and has a market capitalisation of around S$5.5 billion as at 10 January 2014. As at 30 September 2013, its total net tangible assets reached S$5.2 billion, with a nationwide network consisting of 200 branches and sub-branches.