BOCHK to buy BOCI Private Bank for $2b, sell securities firm for 410 million yuan

BOC Hong Kong (2388) said it plans to acquire BOCI Private Bank from BOCI Asia for 1.91 billion yuan (HK$2.1 billion) while selling Po Sang Securities to the vendor for 410 million yuan. 

BOCHK’s parent Bank of China (3988) wholly owns BOCI Asia which holds a 100 percent stake in BOCI Private Bank. 

The private bank is a restricted license bank authorised under the Hong Kong Banking Ordinance and had a net asset value HK$1.8 billion as of the end of June. 

The net asset value of BOCHK’s subsidiary Po Sang Securities was HK$385 million by June. 

BOCHK believes the proposed acquisition would further strengthen its position in the private banking market, accelerate the enhancement of wealth management services, product innovation, marketing capability and competitive edge of its private banking business in Hong Kong and promote high-quality and sustainable development in its private banking business, according to a filing on Friday.

The lender also reckoned that the planned disposal would streamline its corporate structure, reinforce its focus and further enhance the competitiveness of its core businesses, and unleash the potential of Po Sang Securities under the new shareholding structure.