Hang Seng Bank shareholders approve HSBC’s US$14 billion privatisation bid
HSBC receives strong backing from Hang Seng Bank’s independent shareholders, getting 85.75 per cent of the votes
Hong Kong’s banking sector began a new chapter on Thursday as Hang Seng Bank shareholders approved HSBC Holdings’ bid to take the lender private in a deal worth nearly US$14 billion.
It surpassed the threshold requiring approval from at least 75 per cent of independent shareholders and not more than 10 per cent against it. It excludes the 63 per cent stake in Hang Seng Bank already owned by HSBC.
“We are pleased with the approval of the proposal and grateful to Hang Seng Bank shareholders for their continued support,” said Georges Elhedery, CEO of HSBC. “The approval reflects strong confidence in Hang Seng Bank’s franchise and in the opportunities that full ownership within the HSBC Group can unlock.”
Hang Seng Bank will be removed from its namesake stock index after the market close on January 14, ending a blue-chip tenure dating back to 1972. January 14 will also be the last trading day for the bank’s shares, with their delisting from the Hong Kong stock exchange taking place after the market close on January 27.