American Express, a payments and travel company, has said that depending on market conditions the company may sell its shares in Industrial and Commercial Bank of China.
Pursuant to the shareholder rights agreement between Industrial and Commercial Bank of China (ICBC) and American Express, the lock-up period for the H-shares held by American Express will expire in two equal installments on April 28, 2009 and October 20, 2009.
American Express said that it will explore all potential methods of sale that would maximise value and minimise market impact, with a preference for a private sale to investors.
Through a network partnership agreement, ICBC has been issuing American Express branded consumer and commercial cards in China since 2004. The companies plan to expand their co-operation in various areas including credit card products development, marketing, risk management, customer service, and staff training.
The total shareholding in ICBC by American Express represents approximately 0.38% of ICBC’s total outstanding shares.
Jiang Jianqing, chairman of ICBC, said: The co-operation between ICBC and American Express in the past few years has been fruitful and rewarding, we feel very satisfied with the achievements we made together. We look forward to a further and deeper partnership between our two companies to provide our clients with better products and services.
Kenneth Chenault, chairman and CEO of American Express, added: China is a key focus for American Express and ICBC is one of our most important card issuing partners. Working together we’ve been able to build a strong card presence in one of the world’s fastest growing markets. We look forward to expanding our partnership in the years to come, by delivering new and innovative payment products to ICBC’s customers, and continuing to serve them as they travel around the world.
