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HSBC Moves to Take Hang Seng Bank Private With HK$155-a-Share Offer

HSBC signals a 125 basis-point CET1 hit, pausing buybacks for three quarters to rebuild buffers.

Overview

  • The proposal offers HK$155 in cash for the 36.5% of Hang Seng shares HSBC does not own, valuing that purchase at about HK$106.1 billion (approximately US$13.6 billion) at a roughly 30% premium to the last close.
  • HSBC says the price is final, with Hang Seng’s publicly listed shares to be canceled under a Hong Kong scheme of arrangement if the deal proceeds.
  • The transaction requires a recommendation from Hang Seng’s board followed by shareholder, court, and regulatory approvals under Hong Kong law.
  • HSBC currently owns about 63% of Hang Seng and says it intends to retain the Hang Seng brand and branch network if the deal completes.
  • The offer follows rising impaired loans at Hang Seng tied to property exposure, with the ratio up to 6.1% of gross loans at end‑2024 from 2.8% a year earlier.