Feng Huang Wang·2025-10-09 05:08Core Viewpoint - HSBC Asia plans to privatize Hang Seng Bank, leading to a significant increase in Hang Seng Bank's stock price by 25% following the announcement [1] Group 1: Privatization Details - HSBC Asia, a wholly-owned subsidiary of HSBC Holdings, has requested Hang Seng Bank's board to propose a privatization plan to shareholders [1] - The proposed offer price is HKD 155 per share, representing premiums of approximately 30.3%, 33.1%, and 48.6% over the last trading day's closing price, the average closing price over the last 30 trading days, and the average closing price over the last 360 trading days, respectively [1] - Following the announcement, Hang Seng Bank's stock opened with a jump of 15% and reached a peak of HKD 168 per share during the trading day [1] Group 2: Shareholding Structure - HSBC Asia and its concert parties hold approximately 63.36% of Hang Seng Bank's total issued shares, with 11.88 billion shares being non-plan shares that will not be canceled upon the plan's effectiveness [2] - Hang Seng Bank has a total of 18.76 billion issued shares, of which 6.85 billion shares will constitute plan shares [2] - The total valuation of Hang Seng Bank's issued share capital is approximately HKD 290.3 billion, with a cash payment total of HKD 106.2 billion proposed for the plan shareholders [2] Group 3: Financial Performance - According to Hang Seng Bank's 2024 annual report, the bank's operating profit is projected to be HKD 21.6 billion, reflecting a year-on-year growth of 8.54% [2] - The bank's attributable profit to shareholders is expected to be HKD 18.4 billion, showing a year-on-year increase of 3.37% [2] - As of the end of 2024, Hang Seng Bank's total assets are estimated at HKD 1.7952 trillion, a growth of 6.09% compared to the end of 2023 [2]