BEA leaders agree to acquire $509 million worth of shares from SMBC

The Bank of East Asia (0023) said its executive chairman David Li Kwok-po and his spouse, as well as deputy chairman Arthur Li Kwok-cheung have agreed to purchase 52.8 million shares from Sumitomo Mitsui Banking Corporation for HK$9.64 apiece. 

The shares, representing approximately 2 percent of the total issued ordinary shares, are being sold at a 13.3 percent discount to the closing price on Friday. The total consideration of the deal is around HK$509 million, according to The Standard’s calculation based on a filing. 

Upon completion of the acquisition, SMBC will remain as a substantial shareholder with a stake of 19.79 percent in the lender, while David Li and his spouse, Penny Poon Kam-chui, will hold a 5.48 percent interest, the filing said. 

Arthur Li’s shareholdings in the bank will also increase to 1.6 percent after the deal. 

David Li and Arthur Li have conveyed that their purchase reflects their confidence in the bank's long-term prospects, strategic direction and ability to deliver sustainable value to shareholders, according to the filing. 

STAFF REPORTER