Thursday, July 31, 2014   

OCBC makes HK$38.4b cash offer to acquire Wing Hang Bank
(04-01 09:29)

Singapore's Oversea-Chinese Banking Corp said it has offered to buy Hong Kong listed Wing Hang (0302) bank for US$4.95 billion.
“The bank has sufficient financial resources to satisfy the full acceptance of the offer through its own internal cash and cash-equivalent resources and/or a commitment loan facility,'' OCBC said in a statement.
OCBC offered to buy each Wing Hang share at HK$125, or a total of HK$38.43 billion (US$4.95 billion) “in cash.’’
The Singapore bank said it has “sufficient financial resources'' to finance the deal.
The offer price gives a 1.6 percent premium to Wing Hang shares as of their last closing price of HK$123, and about 67.3 percent over the 90-day average price, OCBC said in a statement to the Singapore stock exchange.
OCBC said its banking franchise is focused around Singapore, Malaysia and Indonesia with 16 branches and sub-branches in China and one in Hong Kong, while Wing Hang’s banking franchise is focused around Greater China comprising 42 branches in Hong Kong, 15 branches and sub-branches in China and 13 branches in Macau. The acquisition of WHB would
therefore significantly increase the OCBC Group’s coverage in Greater China to a total of 87 branches and sub-branches, giving OCBC an expanded presence in China and Hong Kong in addition to providing it with a new platform in Macau. The enlarged network across Greater
China will put the enlarged OCBC Group in a position to capitalise on increasing trade, investment, capital and wealth flows between Greater China and South East Asia.’’
Wing Hang shares will resume trading today following suspension.
—AFP/The Standard
   
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