HSBC tables US$13bn privatisation deal for Hong Kong bank Hang Seng

HSBC has proposed to privatise Hong Kong bank Hang Seng in a US$13bn takeover bid as it looks to increase market share in areas where it has “clear competitive advantages”.

As the controlling shareholder of Hang Seng, owning 63% of the bank’s shares, HSBC is seeking to make Hang Seng a wholly owned subsidiary of HSBC Asia Pacific and delist it from the Hong Kong Stock Exchange through a scheme of arrangement.

The privatisation offer of HK$106bn (US$13bn) is based on Hang Seng being valued at HK$290bn (US$37.3bn) on an equity value basis. The proposal is subject to shareholder approvals and being sanctioned by the High Court in Hong Kong.

HSBC group CEO Georges Elhedery said Hang Seng’s brand, heritage, customer proposition, and branch network will be preserved, with HSBC investing in its products, services, and technology to provide more choice and for customers.

“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,” Elhedery said.

“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.”