Ge Long Hui·2025-10-09 00:16Core Viewpoint - HSBC Holdings and Hang Seng Bank have announced a proposal for the privatization of Hang Seng Bank, with a cash offer of HKD 155.00 per share, representing a premium of approximately 30.3% over the last closing price of HKD 119.00 [1][2] Group 1: Privatization Proposal - HSBC Asia Pacific, as the offeror, has requested the Hang Seng Bank board to present the proposal to shareholders for privatization under Section 673 of the Companies Ordinance [1] - The proposed cash consideration will be paid to shareholders for all issued shares of Hang Seng Bank, excluding certain shares held by HSBC Asia Pacific [1][2] - Shareholders will receive an interim dividend for the third quarter of 2025, which will not be deducted from the proposed cash consideration [1] Group 2: Financial Implications - HSBC Asia Pacific will utilize internal resources to pay the proposed cash consideration to shareholders, with BofA Securities and Goldman Sachs confirming sufficient financial resources for this payment [3] - The proposal is expected to enhance earnings per share by eliminating non-controlling interest deductions from Hang Seng Bank's profits [3] - HSBC aims to maintain a dividend payout ratio of 50% of earnings per share, excluding significant items, and anticipates a capital impact of approximately 125 basis points upon completion of the proposal [3]