Hong Kong-based Hang Seng Bank announced that HSBC’s $13.6 billion offer to take the bank private is fair and reasonable. The bank’s independent board committee recommended that minority shareholders vote in favor of the offer.
According to the offer, HSBC plans to buy back the 36.5% stake that it does not currently own.
The deal stands out as part of HSBC’s goal to strengthen its operations through strategic acquisitions while also continuing asset sales. Hang Seng Bank has been under pressure in recent years due to its high exposure to the Hong Kong and mainland China real estate markets. Debtor real estate developers and creditors may face even more intense financial stress with bonds maturing next year rising by approximately 70%. Hang Seng Bank, founded in 1933, is one of Hong Kong’s largest banks and a key member of the HSBC group. The bank serves approximately 4 million customers through digital channels and over 250 branches across the city.
