In a joint statement by HSBC, HSBC Asia Pacific and Hang Seng Bank, HSBC noted that its proposed privatisation arrangement scheme had been reviewed by Hang Seng’s independent financial adviser and its independent board committee.
Both the adviser and the committee, it added, concluded the proposal was “fair and reasonable” and recommended shareholders voted in favour of the scheme.
HSBC, which owns about 63 percent of Hang Seng Bank, offered to take it private in October by spending HK$106 billion buying all the shares it didn’t already hold at HK$155 each.
That price represents a 30 percent premium to Hang Seng Bank’s closing share price before the deal was announced.
Hang Seng Bank’s court and general meetings would be held on January 8 for shareholders to vote on the proposal, with the votes released on the same day.
Upon approval by shareholders and being recognised by the High Court, the privatisation proposal is expected to take effect on January 27, when the bank’s shares will be delisted on the Hong Kong Stock Exchange.
HSBC chief executive Georges Elhedery said the group was “delighted” to receive the recommendations over the proposal.
“Our intention to privatise Hang Seng Bank is an investment for growth in a home market we know very well. We see a compelling opportunity to create greater alignment, while respecting the heritage and customer proposition of Hang Seng Bank,” he said.
“We will invest further in our relative strengths to respond quickly to market and customer needs as we serve Hong Kong’s many growth opportunities ahead.”
The proposal values Hang Seng Bank at HK$290 billion, with HSBC pointing out earlier that its HK$155 per share offer is final and would not be raised “under any circumstances”.