Singapore’s OCBC offers $4.95b for Wing Hang bank
Oversea-Chinese Banking Corp Ltd, or OCBC, Singapore’s second-biggest financial institution, made a formal offer to buy Hong Kong’s Wing Hang Bank Ltd for a slightly lower than expected $4.95 billion.
It is offering 125 Hong Kong dollars ($16.13) a share to buy all shares of Wing Hang, according to a joint announcement, after having reached a deal with the bank’s biggest shareholder to purchase a nearly 45 per cent stake.
The offer price is below earlier expectations, with sources previously estimating the deal could be worth $5.3 billion. It translates to a book value of 1.77 times for Wing Hang Bank based on its book as of December 31.
The deal will give OCBC a much sought-after gateway to China and help bridge the gap with bigger Singapore rival DBS Group Holdings, which operates Hong Kong’s fifth-biggest bank.
OCBC will purchase the stake from members of Wing Hang’s founding Fung family, their affiliates and related family trusts, and BNY International Financing Corp.
Oversea-Chinese Banking Corp Ltd, or OCBC, Singapore's second-biggest financial institution, made a formal offer to buy Hong Kong's Wing Hang Bank Ltd for a slightly lower than expected $4.95 billion. It is offering 125 Hong Kong dollars ($16.13) a share to buy all shares of Wing Hang, according to a joint announcement, after having reached a deal with the bank's biggest shareholder to purchase a nearly 45 per cent stake. The offer price is below earlier expectations, with sources previously estimating the deal could be worth $5.3 billion. It translates to a book value of 1.77 times for Wing Hang...
Oversea-Chinese Banking Corp Ltd, or OCBC, Singapore’s second-biggest financial institution, made a formal offer to buy Hong Kong’s Wing Hang Bank Ltd for a slightly lower than expected $4.95 billion.
It is offering 125 Hong Kong dollars ($16.13) a share to buy all shares of Wing Hang, according to a joint announcement, after having reached a deal with the bank’s biggest shareholder to purchase a nearly 45 per cent stake.
The offer price is below earlier expectations, with sources previously estimating the deal could be worth $5.3 billion. It translates to a book value of 1.77 times for Wing Hang Bank based on its book as of December 31.
The deal will give OCBC a much sought-after gateway to China and help bridge the gap with bigger Singapore rival DBS Group Holdings, which operates Hong Kong’s fifth-biggest bank.
OCBC will purchase the stake from members of Wing Hang’s founding Fung family, their affiliates and related family trusts, and BNY International Financing Corp.
