Xin Hua Cai Jing·2025-10-09 11:25Core Viewpoint - HSBC Holdings Limited announced a proposal to privatize Hang Seng Bank Limited through an agreement with its wholly-owned subsidiary, Hongkong and Shanghai Banking Corporation Limited, which would involve acquiring all remaining shares held by minority shareholders at a cash price of HKD 155 per share, representing a significant premium over recent trading prices [2][3] Group 1: Proposal Details - The proposed cash offer of HKD 155 per share represents a premium of approximately 33% over the average closing price of HKD 116.5 per share over the last 30 trading days prior to October 8 [2] - The offer also reflects a premium of about 48.6% over the average closing price of HKD 104.30 per share over the last 360 trading days [2] - The total valuation of Hang Seng Bank under this proposal is HKD 290 billion, equating to 1.8 times the book value for the first half of 2025, which is higher than the valuation levels of peers in Hong Kong [2] Group 2: Strategic Rationale - The CEO of HSBC emphasized that this offer is part of a strategy to expand HSBC's business in Hong Kong and streamline operations, allowing for more direct investment in shared services and accelerating technological upgrades [3] - The acquisition is seen as a prudent investment that can enhance shareholder returns by allowing HSBC to better utilize capital and fully leverage Hang Seng's profit potential [4] - The proposal is expected to provide Hang Seng Bank with the benefits of HSBC's scale, global resources, and expertise, further supporting its development in Hong Kong [4]