HSBC Holdings PLC on Monday received support for its planned buy out of minority investors in Hong Kong lender Hang Seng Bank Ltd.
HSBC, the London-based Asia focused lender, said an independent board committee of the Hang Seng Bank concluded that the proposals were ‘fair and reasonable’, and recommended shareholders back the plans.
In October, HSBC offered HK$155 per share, around $19.92, for the 37% of Hang Seng Bank it does not already own.
The offer valued Hang Seng Bank at HK$290.31 billion, and HSBC’s holding at HK$106.16 billion, or $13.62 billion.
HSBC expects the deal, which will be funded from internal resources, to be accretive to earnings per ordinary share as a result of the removal of the minority interest earnings deduction related to Hang Seng Bank.
On Monday, HSBC said documents providing more details of the proposals will be sent to shareholders, along with the notices of the Hang Seng Bank court meeting and the Hang Seng Bank general meeting to be held on Thursday, January 8.
If approved, the scheme by which the deal is to be facilitated is expected to become effective on January 26, with Hang Seng’s listing withdrawn the following day.
Shares in HSBC were up 0.6% to 1,118.00 pence each in London on Monday. HSBC also is listed in Hong Kong, where it closed down 0.9% at HK$116.20.
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