China Construction Bank Corporation (601939) announced on 28 May that Bank of America will buy 6 billion H-shares of CCB. Bank of America will exercise its call option, which was granted in 2005 based on a Share and Option Subscription Agreement with Central Huijin Investment Company, a state-owned major shareholder of CCB. Bank of America will be able to buy 6 billion H-shares of CCB at the price HKD 2.42 per share from Central Huijin Investment Company. The transaction is expected to be completed by 5 Jun 2008.

Apart from certain exceptions, the 6 billion H-shares cannot be transferred prior to 29 Aug 2011 without the written consent of CCB. After this option exercise, Central Huijin Investment Company and its wholly-owned subsidiary China Jianyin Investment Limited will hold 152,842,297,904 H-shares of CCB, accounting for 65.04% of total issued shares of CCB. Bank of America will hold 25,132,974,346 H-shares of CCB, accounting for 10.75%.

Source: Financial News

Date: 28 May 2008

CN01/MZ/KM/MM