HSBC proposes to privatise Hang Seng Bank in HK$106 billion deal
發佈日期: 2025-10-09 20:33
TVB News
HSBC Holdings today announced plans to privatise its subsidiary Hang Seng Bank in a deal worth 106.1 billion Hong Kong dollars.
The move would end Hang Seng's more-than-half-a-century listing in Hong Kong.
The decision to take Hang Seng Bank private was unveiled in a joint announcement by HSBC Holdings and Hang Seng Bank in which HSBC will offer 155 dollars per share in a deal totalling 106.1 billion dollars.
That represents a roughly 30 percent premium over Hang Seng's previous closing price. Upon completion, Hang Seng will end its 53-year listing status.
HSBC Holdings says the privatisation represents a major investment in Hong Kong, demonstrating the group's commitment to the city as a core market while also streamlining its Hong Kong business structure to improve operational efficiency.
Management stressed that the privatisation plan is unrelated to Hang Seng's bad debts, and that the premium on offer should be attractive to Hang Seng shareholders.
DAVID LIAO, Co-CEO, HSBC Asia and the Middle East: "This speaks of HSBC as a group's confidence into Hong Kong as a growth market across opportunities of wealth, capital markets, etc. I just want to reinforce the fact that it's a growth story this is enacting the implementation of our group strategy in the past 12 months. It has nothing to do strategic-wise to bad debts or real estate related issues in Hang Seng."
Currently, HSBC holds 63 percent of Hang Seng's shares and will extend the privatisation offer to remaining shareholders.
HSBC says that offer price will not increase, the payment will be funded internally and both HSBC and Hang Seng will continue to operate under their respective brands in Hong Kong, maintaining Hang Seng's independent brand identity and branch network.
The bank expects privatisation to boost HSBC's earnings per share while keeping a 50 percent dividend payout ratio. However, no share buybacks will be initiated in the next three quarters.
The Hong Kong Monetary Authority says it will conduct regulatory review on the privatisation proposal under established procedures.
Some financial advisors say HSBC's premium offer signals confidence in Hang Seng's prospects.
Tommy Ong, Managing Director of TO & Associates Consultancy, says HSBC likely believes that Hang Seng's bad debts have peaked, with room for improvement ahead.
He says even if more write-offs continue in the third and fourth quarters, privatisation allows Hang Seng to manage disclosure more flexibly, giving the bank more breathing space.
In May this year, Hang Seng laid off about 1 percent of its core staff. Ong expects no more layoffs over the short term.
Founded in 1933, Hang Seng Bank is one of Hong Kong's largest Chinese-owned banks.
During the April 1965 stock crash, many banks faced runs with Hang Seng experiencing withdrawals of 80 million dollars in a single day, accounting for one-sixth of its total deposits and a cumulative loss of 200 million dollars through the entire month.
In the end, HSBC stepped in, acquiring 51 percent of Hang Seng shares for 51 million dollars. Hang Seng still maintained independent operations.
In 1969, the Hang Seng Index was established to reflect stock market performances.
When Hang Seng was listed on the Hong Kong Stock Exchange in the 1970s, it was oversubscribed by nearly 29 times.
