HONG KONG: Hang Seng Bank shareholders on Thursday approved a plan by its majority owner HSBC to take the bank private, in a landmark move to further boost the Asia-focused lender's presence in Hong Kong.
HSBC, which proposed to buy the 36.5% of Hang Seng shares it does not already own, secured around 86% support in a Hang Seng Bank shareholders' vote, according to a joint announcement.
Hong Kong's high court will decide in a hearing on January 23 whether the take-private plan can be executed, according to an HSBC statement. HSBC's offer for the 36.5% stake is worth around $13.6 billion.
Hang Seng Bank is expected to be withdrawn from the Hong Kong stock market on January 27, providing the hearing grants the deal a final green light.
"The approval reflects strong confidence in Hang Seng Bank’s franchise and in the opportunities that full ownership within the HSBC Group can unlock," HSBC CEO Georges Elhedery said in the statement.
The deal comes as HSBC looks to boost some operations through acquisitions while continuing with divestments, Elhedery told Reuters when the deal was announced.
Hang Seng Bank, which has been under pressure in recent years due to its relatively high exposure to the Hong Kong and mainland Chinese property markets, will become a wholly-owned subsidiary of HSBC Asia Pacific.
Founded in 1933, Hang Seng is one of Hong Kong's largest banks, serving about four million customers through digital platforms and more than 250 branches across the city. - Reuters
