HSBC proposes to privatise Hang Seng Bank
Today we’ve put forward a conditional proposal to privatise Hang Seng Bank, a leading bank in Hong Kong.
We’re the controlling shareholder of Hang Seng, with a shareholding of approximately 63%, and are proposing to privatise Hang Seng by what is known as a scheme of arrangement.
If approved, Hang Seng will become a wholly owned subsidiary of HSBC Asia Pacific and will be delisted from the Hong Kong Stock Exchange.
The proposal is in line with our strategy to increase leadership and market share in areas where we have clear competitive advantages and the greatest opportunities to grow and support our clients.
We aim to grow in Hong Kong by strengthening the banking presence of HSBC Asia Pacific and Hang Seng, focusing on their relative strengths and competitive advantages, while allowing all customers to choose where to bank.
‘An exciting opportunity’
“Our offer is an exciting opportunity to grow both Hang Seng and HSBC. 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,” said Georges Elhedery, our Group CEO.
“Our offer also represents a significant investment into Hong Kong’s economy, underscoring our confidence in this market and commitment to its future as a leading global financial centre, and as a super-connector between international markets and mainland China.
“This proposal fully meets our criteria for value-accretive investments: it aligns with our strategy, enhances growth and scale, does not distract us from organic growth, and delivers greater shareholder value than buybacks.
“Together, HSBC and Hang Seng form a well-positioned platform with two iconic banking brands working side by side to deliver lasting value for customers, employees, and shareholders.”
The HK$106 billion privatisation offer values 100% of Hang Seng at HK$290 billion on an equity value basis. The proposal includes an offer of HK$155 for each Scheme Share, representing a 33% premium over the undisturbed 30-days’ average closing price of HK$116.5 per share.
The proposal will become effective subject to the satisfaction of conditions, including Hang Seng shareholder approvals, and sanction by the High Court in Hong Kong.
Read more in our media release.