HSBC has proposed a HK$106 billion plan to privatise Hang Seng Bank, aiming to take full ownership of the Hong Kong lender through a scheme of arrangement.
HSBC Proposes to Privatise Hang Seng Bank in HK$106 Billion Deal
HSBC currently owns about 63% of Hang Seng and plans to acquire the remaining shares at HK$155 per share, representing a 33% premium over the bank’s 30-day average price of HK$116.50.
If approved, Hang Seng would become a wholly owned subsidiary of HSBC Asia Pacific and be delisted from the Hong Kong Stock Exchange.
“Our offer is an exciting opportunity to grow both Hang Seng and HSBC,” said Georges Elhedery, HSBC Group Chief Executive.
“We will preserve Hang Seng’s brand, heritage, distinct customer proposition and a branch network, while investing to unlock new strengths in products, services, and technology to deliver more choice and innovation for customers.”
Elhedery said the proposal aligns with HSBC’s strategy to consolidate leadership in key growth markets and reflects its long-term commitment to Hong Kong as a global financial centre and gateway to mainland China.
The transaction will require approval from Hang Seng shareholders and sanction by the Hong Kong High Court.
If successful, HSBC said the integration would strengthen its presence in Hong Kong and drive greater value for customers and shareholders alike.
