OCBC Trying to Acquire Wing Hang Bank with 38.4 Billion Hong Kong Dollars
Release Date:2014-04-01 15:36:15

China News Agency, Shanghai, April 1 (Reporter- Jiang Yu) - OCBC announced on April 1 that it has, through its wholly-owned subsidiary OCBC Pearl Limited, proposed a conditional voluntary general offer to Wing Hang Bank Limited, and the main purpose of acquisition is to expand the business in Chinese market.

OCBC’s offer program proposed to acquire the entire issued share capital of Wing Hang Bank with HK $ 125 per share in cash, or a total of HK $ 38.428 billion. The price is higher than the last closing price of HK $ 123, with a premium of approximately 1.6%, and a premium of 67.3% compared with the average price in 90 days(closing price on September 16, 2013). This proposed purchase price is about 1.77 times of Wing Hang’s consolidated net book value on December 31 2013.

It is reported that OCBC Pearl Wing Hang bank has accepted ​​the irrevocable commitments made by a number of shareholders of Wing Hang Bank to accept the offer, including the Fung family and BNY International Financing Corporation holding a total of 44.79% shares, as well as other shareholders with a total of 3.37% shares of Wing Hang Bank. In addition to these irrevocable commitments, OCBC Pearl has agreed to acquire 7,704,500 shares of Wing Hang Bank. These shares and the shares with irrevocable commitments account for approximately 50.66% of the issued share capital of Wing Hang Bank.

The OCBC said the acquisition of Wing Hang Bank further defined the strategic goal of deepening the development of four core markets in Singapore, Malaysia, Indonesia and Greater China (including mainland China, Hong Kong, Macau and Taiwan).

Wing Hang Bank has a network of seventy branches in Hong Kong, Macau and China, and its extensive experience and knowledge in SME secured and unsecured loans business in the Greater China will complement with OCBC’s superiority of focusing on the development of corporate banking business. OCBC expects after the acquisition is accomplished, Wing Hang Bank will increase its contribution to annual pre-tax profit in Greater China to the Group to 16% from 6% in 2013.

OCBC established in 1932, is the oldest bank in Singapore, and now the second largest financial service group in Southeast Asia, by assets.