Xin Lang Cai Jing·2025-10-10 06:21Core Viewpoint - HSBC has proposed to privatize Hang Seng Bank with over HKD 106.1 billion in cash, marking the largest transaction for HSBC in decades [2] Group 1: Transaction Details - HSBC submitted a privatization offer to Hang Seng Bank's board in early September, and the deal was facilitated within about four weeks [2] - The advisory teams worked tirelessly, including during the Mid-Autumn Festival, and the offer was revised three times [2] - The internal negotiations at HSBC were codenamed "Pearl," while Hang Seng Bank's executives referred to the discussions as "Bauhinia" [2] Group 2: Strategic Considerations - The negotiations began months prior, with Morgan Stanley advising Hang Seng Bank and Goldman Sachs and Bank of America advising HSBC [2] - HSBC's CEO, Georges Elhedery, stated that the privatization proposal was well-prepared over a long period, involving collaboration with the board, regulators, and industry experts [2] - The proposal has received support from Hang Seng Bank's board and is described as a strategic decision based on commercial considerations for long-term development [2]