HSBC Holdings (HSBC) said Tuesday it expects its stake in Bank of Communications to decline to about 16% from 19.03% due to the Chinese bank's plan to sell shares to raise up to 120 billion renminbi ($16.45 billion).
The UK-based lender said it expects the stake reduction to result in a pre-tax loss of $1.20 billion to $1.60 billion to be recognized in the income statement, subject to the timing of execution, foreign exchange and other factors.
HSBC also said that the loss is expected to have "no material impact" on its capital ratios or distribution capacity.
HSBC shares were nearly 3% higher in recent trading.
Price: 57.99, Change: +1.65, Percent Change: +2.93
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.