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October 30, 2007

The big blue goes red

The world's largest bank last week announced it would take a 20% stake in Standard Bank, Africa's largest bank, in the biggest foreign direct investment by a Chinese company anywhere in the world. This means South Africa is now the top destination for Chinese foreign investment, ahead of Zambia and the Sudan.

On Thursday it was announced that the Industrial and Commercial Bank of China (ICBC) would purchase the stake in the bank for $5,5-billion. Standard Bank will issue new shares representing 11,1% of issued share capital. A further 11,1% of existing shares will be purchased for cash from existing ordinary shareholders at R136, a 30% premium on the 30-day trading average of R104,58.

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Posted by StaffWriter at October 30, 2007 11:04 AM