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HSBC Wins Shareholder Backing to Take Hang Seng Bank Private

A Hong Kong High Court hearing on January 23 will decide whether the HK$106.1 billion deal can proceed.

Overview

  • Independent shareholders gave roughly 86% support, clearing the Takeovers Code requirement of at least 75% approval with limited opposition.
  • HSBC offered HK$155 per share for the 36.5% it does not own, valuing Hang Seng Bank at about HK$106.1 billion, or roughly US$13.6 billion.
  • Subject to court sanction, the scheme is slated to take effect on January 26 with delisting from the Hong Kong Stock Exchange expected on January 27.
  • HSBC already holds about 63% of Hang Seng and plans to make the lender a wholly owned subsidiary of HSBC Asia Pacific upon completion.
  • HSBC’s Georges Elhedery said the vote shows confidence in Hang Seng’s franchise and the benefits of full ownership as the group integrates operations.