SINGAPORE: Singapore’s Oversea-Chinese Banking Corp. (OCBC) said yesterday it has offered to buy Hong Kong’s Wing Hang Bank for $4.95bn as it seeks to boost its presence in the giant Chinese market.
OCBC said in a statement the acquisition would provide it with a platform to grow its yuan-denominated businesses, and broaden its access to US and Hong Kong dollar funds. Hong Kong is the world’s biggest offshore market for the yuan, which is gaining international significance in tandem with China’s growing economic might.
OCBC said its “pre-conditional voluntary general offer” for Wing Hang was made through OCBC’s wholly owned subsidiary OCBC Pearl Limited. It offered to buy each Wing Hang share at HK$125, or a total of HK$38.43bn ($4.95bn) “in cash”, saying it has “sufficient financial resources” to finance the deal. The offer price gives a 1.6 percent premium to Wing Hang shares as of their last closing price of HK$123, and about 67.3 percent over the 90-day average price, OCBC said in a statement to the Singapore stock exchange.
OCBC said the acquisition would strengthen its “strategic goal of deepening its presence in its four core markets — Singapore, Malaysia, Indonesia and the greater China region” comprised of the mainland, Hong Kong, Macau and Taiwan. AFP