BOC mulls acquiring 30% stake in Switzerland’s HFM
The Bank of China (BOC), the second largest lender in China, is likely to acquire a 30% stake in Switzerland-based Heritage Fund Management SA (HFM), a subsidiary of Switzerland’s investment institution Heritage Bank, according to industry sources.
The deal is still being discussed, said Li Tao, manager of HFM’s investment department. However, he refused to disclose further details on the transaction. Li said HFM is in talks with BOC Hong Kong (Holdings) Ltd on the acquisition plan, and that HFM has been negotiating a collaboration with BOC on this matter since early 2007.
A BOC spokesman said that nothing has been decided yet, and the plan would still need a final confirmation, which may be announced over the next one or two days.
According to a source, the Geneva-based HFM is managing three Chinese funds – Heritage Fund China Absolute Return, 788 China Fund and 788 China Smaller Cap Fund.
The Heritage Bank, the parent company of HFM, had in September 2007 arranged a CHF15 million convertible bonds issue in Switzerland for Beijing Wanquan Technology Pharmaceutical Co. Ltd.
Li also said that HFM planned to set up an office in Shanghai to analyze Asian stock markets, including those of China and Japan. If this stake acquisition is completed, HFM will consider transferring these analysis functions to BOC.
Tags: BOC, China Investment, Fund