Björn Laczay via flickr
The transaction value is estimated at 25.7 billion yuan ($ 4 billion), according to Deutsche Bank. Sale of the asset will add 30-40 basis points to the current 11.5% of the base capital of the first level (Common Equity Tier 1).
John Cryan, the general director of Deutsche Bank who took the post in July, is selling assets and reducing bonuses to strengthen the bank’s financial position without involvement of shareholders' funds. Following its rivals Banco Bilbao Vizcaya Argentaria SA, Goldman Sachs Group Inc. and Bank of America Corp., Deutsche Bank sells stake in Chinese financial institutions, as being a minority shareholder in credit institutions has become more expensive with the introduction of new international rules.
"Well, it's done, but it is only a small step on a long journey, and this deal does not propel them forward. It was clear that they could not achieve significant success as a minority shareholder", - believes Christiane Hamann, an analyst at Hamburger Sparkasse.
source: dw.de
John Cryan, the general director of Deutsche Bank who took the post in July, is selling assets and reducing bonuses to strengthen the bank’s financial position without involvement of shareholders' funds. Following its rivals Banco Bilbao Vizcaya Argentaria SA, Goldman Sachs Group Inc. and Bank of America Corp., Deutsche Bank sells stake in Chinese financial institutions, as being a minority shareholder in credit institutions has become more expensive with the introduction of new international rules.
"Well, it's done, but it is only a small step on a long journey, and this deal does not propel them forward. It was clear that they could not achieve significant success as a minority shareholder", - believes Christiane Hamann, an analyst at Hamburger Sparkasse.
source: dw.de
