RPT-UPDATE 3-Santander ups bet on China with Bank of Shanghai stake

miércoles 11 de diciembre de 2013 07:12 CET

* HSBC places fair value of $468.2 million on stake as of Sept. 30

* Santander says eyeing China trade flows with Latam

* Bank of Shanghai expected to list shares in HK, Shanghai

By Sarah White and Matt Scuffham

MADRID/LONDON, Dec 11 (Reuters) - Santander, Spain's largest bank, has agreed to buy HSBC's 8 percent stake in Bank of Shanghai, expanding its presence in China at a time when other foreign banks have hit the exit button.

Santander, which already has a consumer finance venture and a car financing business in China, said on Tuesday the deal also included a cooperation agreement with the Chinese bank, taking the value of its investment to 470 million euros ($647.3 million).

The deal is seen helping Bank of Shanghai move a step forward with an expected initial public offering by giving it a secure foreign investment and a valuation. The Chinese lender is seeking an IPO in Shanghai and Hong Kong with a combined value of about $2 billion.

Bank of Shanghai officials could not be immediately reached for comment on the deal or the IPO plans.   Continuación...