Singapore’s OCBC offers $4.95b for Wing Hang bank

wing-hangOversea-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.



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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...

wing-hangOversea-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.



Support ASEAN news

Investvine has been a consistent voice in ASEAN news for more than a decade. From breaking news to exclusive interviews with key ASEAN leaders, we have brought you factual and engaging reports – the stories that matter, free of charge.

Like many news organisations, we are striving to survive in an age of reduced advertising and biased journalism. Our mission is to rise above today’s challenges and chart tomorrow’s world with clear, dependable reporting.

Support us now with a donation of your choosing. Your contribution will help us shine a light on important ASEAN stories, reach more people and lift the manifold voices of this dynamic, influential region.

$
Personal Info

Donation Total: $10.00

 

 

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