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BEIJING, March 25th,2009—Industrial and Commercial Bank of China Ltd.(ICBC) and American Express Company (American Express) today reaffirmed their strategic cooperative relationship and addressed plans for the potential sale of ICBC shares held by American Express.
Pursuant to the Shareholder Rights Agreement between ICBC and American Express, the lock-up period for the H-shares held by American Express will expire in two equal installments on April 28th and October 20th 2009. American Express said that depending on market conditions the company may sell its ICBC shareholding at some point after lock-up period, and will explore all potential methods of sale that would maximize value and minimize 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. By the end of 2008, the number of co-brand cards issued exceeded 600,000, and the total consumption amount exceeded RMB 10bn.The companies plan to expand their cooperation in various areas including credit card products development, marketing, risk management, customer service, and staff training.
Mr. Jiang Jianqing, Chairman of ICBC, said: "The cooperation 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 further and deeper partnership between our two companies to provide our clients with better products and services."
"China is a key focus for American Express and ICBC is one of our most important card issuing partners" said Kenneth I. Chenault, Chairman and Chief executive officer of American Express. "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."
The total shareholding in ICBC by American Express represents approximately 0.38% of ICBC's total outstanding shares.
ICBC
ICBC is the largest wholesale and retail bank in China by assets and deposits and is a market leader in many business areas including corporate and personal loans, deposits, mortgages, e-banking, custodian services and inter-bank clearing. It provides a wide range of commercial banking services to corporate and individual customers. ICBC has approximately 16,000 outlets and employs 385,000 people across China. It had total assets of RMB9.4 trillion at the end of 2008.
American Express
American Express Company is a leading global payments and travel company founded in 1850. For more information, visit www.americanexpress.com.
Press Contacts:
ICBC Media contacts (86) 10 6610 8063
Investor Relations (86) 10 6610 8608
American Express Joanna Lambert (1) 212 640 9668
Mike O'Neill (1) 212 640 5951
This release includes forward-looking statements, which are subject to risks and uncertainties. The forward-looking statements contain words such as "believe," "expect," "anticipate," "optimistic,"
"intend," "plan," "aim," "will," "may," "should," "could," "would," "likely," and similar expressions. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date on which they are made. Neither American Express nor ICBC undertakes any obligation to update or revise any forward-looking statements. Factors that could cause actual results to differ materially from these forward-looking statements include, but are not limited to, American Express' ability to sell its shares of ICBC after expiration of the lock-up period and realize the current market appreciation in the value of such investment, which will depend upon market conditions and the economic environment both in China and globally, and the value of the investment at the time of any sale of its shares, among other factors.
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