The proposal gives Hang Seng shareholders an all cash offer at a 33% premium and reaffirms HSBC’s long term commitment to Hong Kong’s financial sector.
HSBC Holdings plc has proposed to privatise Hang Seng Bank, its long-time subsidiary in Hong Kong, through a conditional scheme of arrangement. If approved, the proposal would see HSBC’s Asia Pacific arm acquire all remaining Hang Seng shares from minority investors, leading to the bank’s delisting from the Hong Kong Stock Exchange. The offer values Hang Seng Bank at HK$290 billion, equivalent to 1.8 times its book value Under the plan, Hang Seng shareholders would receive HK$155