Bank of America will exercise its option and purchase 19.58 billion H shares of China Construction Bank (CCB) from central Huijin, said the CCB on Monday.

The purchase price per share will be 1.2 times the audited net assets value per share from September 30, 2008, or 2.46 yuan ($0.36). The transaction is scheduled to be completed by November 30 of this year, said the CCB.

After the purchase, Bank of America will hold 19.13 percent, or 44.7 billion of CCB's issued shares. Huijin still hold a majority 57.03 percent, directly and indirectly through its wholly owned subsidiary -- China Jianyin Investment Limited.

The transaction is based on the share and option purchase agreement signed by the Bank of America and China SAFE Investments Limited, or Huijin, on June 17, 2005. That's when Bank of America was introduced as a strategic investor of the China Construction Bank.

The newly purchased shares will have a lock-up period until August 29, 2011.

(Xinhua News Agency November 18, 2008)