Hang Seng Bank shareholders to vote on HSBC buyout proposal on January 8

HSBC Holdings will host two meetings early next month on its US$14 billion buyout proposal to privatise subsidiary Hang Seng Bank.

The British banking giant announced on Monday the details of the scheme document regarding the privatisation of Hang Seng Bank at HK$155 per share proposed on October 9.

The court meeting and the general meeting of Hang Seng Bank shareholders will be held sequentially from 10.30am on January 8 in Hong Kong. The results of the shareholder votes at both meetings will be revealed the same day, the bank said.

“We see a compelling opportunity to create greater alignment, while respecting the heritage and customer proposition of Hang Seng Bank,” HSBC Group CEO Georges Elhedery said in the statement. “We will invest further in our relative strengths to respond quickly to market and customer needs as we serve Hong Kong’s many growth opportunities ahead.”

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What’s behind HSBC’s privatisation of Hang Seng Bank?

What’s behind HSBC’s privatisation of Hang Seng Bank?

Somerley Capital, the independent financial adviser, concluded that the offer price provides a premium within the range of premiums from recent successful privatisations in the city.

HSBC offered Hang Seng Bank’s shareholders a 30 per cent premium over the closing price of HK$119 on the last trading day before the merger announcement.