Huan Qiu Lao Hu Cai Jing·2025-10-09 08:28Group 1 - HSBC Holdings and Hang Seng Bank announced a proposal for the privatization of Hang Seng Bank, with an estimated transaction value of approximately HKD 290.3 billion [1] - The proposed cash offer is HKD 155 per share, representing a premium of about 30.3% over the last closing price of HKD 119 and a 33% premium over the average closing price of the past 30 days [1] - HSBC Holdings stated that the offer price reflects significant premium compared to historical trading prices and analyst consensus target prices, and is higher than Hang Seng's highest stock price in the past three and a half years [1] Group 2 - Prior to privatization, HSBC Asia and its concert parties held a total of 63.34% of Hang Seng Bank's shares [2] - Following the completion of the privatization, Hang Seng Bank will become a wholly-owned subsidiary of HSBC Holdings, and its listing status on the Hong Kong Stock Exchange will be revoked [2] - After the announcement, Hang Seng Bank's stock surged by 41% to a historical high of HKD 168 per share, with a current increase of 25.71%, bringing its total market capitalization to HKD 280.6 billion [2] Group 3 - As of June 30, 2025, HSBC's latest reported CET1 ratio is 14.6%, and the transaction is expected to impact this ratio by 125 basis points [2] - HSBC announced a suspension of its share buyback program for the next three quarters to gradually restore the CET1 ratio to the target range of 14%-14.5% through organic capital growth [2] - JPMorgan expressed an optimistic outlook on the transaction, indicating that while it may create short-term capital pressure for HSBC, it is expected to have positive long-term effects, with projected increases in earnings per share and dividends by 1.5% and 3.1% respectively by 2027 [2]