Sumitomo Mitsui Banking Corp. or SMBC (TYO:8316) will reduce its equity interests in The Bank of East Asia (HKG:0023) by offloading 52.8 million shares, according to a May 9 bourse disclosure.

The Japanese lender will sell 40.8 million shares to David Li Kwok-po, executive chairman of Bank of East Asia; 4 million shares to his wife, Penny Poon; and 8 million shares to Arthur Li Kwok-cheung, deputy chairman of Bank of East Asia.

The shares, which will be sold at HK$9.64 apiece, represent roughly 2% of the Bank of East Asia's total issued share capital.

Upon disposal completion, SMBC will hold a 19.79% stake in Bank of East Asia and remain as the single largest shareholder.

SMBC's ownership reduction to under 20% aligns with a shareholding cap agreed upon by the banks under a 2015 investment contract.