Scotiabank Increases its Stake in China's Xi'an City Commercial Bank

Scotiabank announced that it has completed the acquisition of a further 13.2% stake in Xi’an City Commercial Bank (XACB), a city commercial bank in Western China, increasing Scotiabank’s holding to 14.8%. In addition, Scotiabank has entered into definitive agreements that upon receipt of final regulatory approvals, will see the bank’s ownership stake in XACB increase to 18.1%. When completed, the total investment in XACB will reach C$162 million. After closing, Scotiabank intends to acquire additional shares from private sources to reach a total combined stake of approximately 20%, the regulatory limit for foreign bank investments in China. The increased ownership in XACB will increase Scotiabank representatives on XACB’s Board of Directors from one to two and also increase Scotiabank’s representation within the senior management team from one to three.