US EditionHSBC's $13.6 Billion Buyout Proposal Wins Hang Seng Bank Board Committee's Nod
An independent committee recommends shareholders approve HSBC's $14 billion offer to privatize Hang Seng Bank amid strategic restructuring and property market pressures.
- On Monday, an independent board committee set up by Hang Seng's directors found HSBC's $13.6 billion take-private offer fair and recommended minority investors vote in favour, while HSBC Holdings will host two meetings early next month on its $14 billion buyout proposal.
- HSBC has been steaming ahead with an overhaul of the bank, as Hang Seng faced declining profits and raised provisions amid pressure from Hong Kong and mainland property markets.
- The proposal offers HK$155 per share, a 30 per cent premium over HK$119, and seeks to buy 36.5% of shares not already owned, with Somerley Capital concluding the price is within recent premium ranges.
- Shareholder votes will be revealed the same day, and if approved, Hang Seng would be delisted on January 27 while serving about 4 million customers through digital platforms and more than 250 branches, with HSBC keeping the Hang Seng brand and branch network.
- The move comes as HSBC's privatization plan takes a step forward amid wider market strain, with bond maturities for debt-laden property developers set to jump by nearly 70% next year.
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HSBC's $13.6 billion buyout proposal wins Hang Seng Bank board committee's nod
Dec 15 : Hong Kong's Hang Seng Bank said on Monday an independent board committee found HSBC's $13.6 billion take-private offer to be fair and reasonable, and recommended its minority investors vote in favour of the proposal.Under the offer, HSBC is proposing to purchase 36.5 per cent of shares in Hang Seng n
Hang Seng Bank Endorses HSBC’s $13.6bn Take-Private Bid as Property Market Strains Intensify
Hong Kong’s Hang Seng Bank said on Monday that an independent board committee has concluded that HSBC’s $13.6 billion proposal to take the lender private is fair and reasonable, urging minority shareholders to vote in favor of the deal in what would be a major consolidation move in the city’s banking sector. Under the proposal, […] The post Hang Seng Bank Endorses HSBC’s $13.6bn Take-Private Bid as Property Market Strains Intensify appeared firs…
HSBC and Hang Seng Bank Announce Despatch of Scheme Document on Proposed Privatisation of Hang Seng Bank
HSBC Holdings plc and The Hongkong and Shanghai Banking Corporation Limited today announced the despatch of the scheme document regarding the proposal for the privatisation of Hang Seng Bank by way of a scheme of arrangement.
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