HSBC announced on 20 July 2006 that an agreement had been entered into with Grupo Banistmo S.A. (Banistmo), the leading banking group in Central America, to make a tender offer to acquire all the outstanding shares of Banistmo for cash. HSBC has today completed the acquisition of 99.98 per cent of outstanding Banistmo shares for a total consideration of approximately US$1.77 billion.
The acquisition of Banistmo complements HSBC's existing operations in the region, in particular in Panama where HSBC already provides services to personal and corporate customers through 19 branches.
This acquisition will enable HSBC to better serve the needs of its regional and international customers. It also establishes a presence in five new markets for HSBC - Colombia, Costa Rica, El Salvador, Honduras and Nicaragua - and provides access to a total population of 83 million people.
For further information contact:
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Notes to editors:
1. The offer expired at 5:00 pm Panama time on Wednesday, 22 November 2006. 33,623,973 shares, which represent 99.98 per cent of the total capital stock of Grupo Banistmo, were validly tendered and accepted for payment.
The offer price was US$52.63 per share in cash for each outstanding share. The total offer consideration to be paid by HSBC for the tendered shares is approximately US$1.77 billion.
All conditions for completion of the offer were met and HSBC obtained all the regulatory approvals required in connection with the offer.
2. HSBC in Panama
HSBC has been present in Panama since 1972. HSBC Bank (Panama) S.A. has 19 branches and 75 ATMs, distributed among the cities of Panama, Colon, Aguadulce, Chitre and David, providing a full range of banking products and services including commercial and consumer banking, HSBC Premier, private banking and corporate banking. In 2005, HSBC Bank (Panama) S.A. acquired the entire share capital of the Financomer Group in Panama for a cash consideration of US$21 million.
3. HSBC Holdings plc
The HSBC Group serves over 125 million customers worldwide through some 9,500 offices in 76 countries and territories in Europe, the Asia-Pacific region, the Americas, the Middle East and Africa. With assets of US$1,738 billion at 30 June 2006, HSBC is one of the world's largest banking and financial services organisations. HSBC is marketed worldwide as 'the world's local bank'.
4. Grupo Banistmo, S.A.
Grupo Banistmo is the leading banking group in Central America, with operations in Panama, Colombia, Costa Rica, Nicaragua, Honduras, El Salvador and Bahamas. At 31 December 2005, Grupo Banistmo had assets of US$6,973 million and shareholders' funds of US$695 million.