Hong Kong’s banking sector is set for a landmark transformation as thousands of Hang Seng Bank shareholders vote on HSBC Holdings’ bid to take the lender private on Thursday morning.
Analysts expected an overwhelming approval for the proposal, which offers shareholders HK$155 a share – 30 per cent higher than Hang Seng Bank’s HK$119 closing price on the last trading day before the announcement on October 9. Since then, HSBC has risen 15 per cent to close at HK$127.20 on Wednesday, on the eve of the vote, while Hang Seng Bank has edged up 29 per cent to HK$153.80.
“I believe the chance for a successful privatisation deal is sky-high,” said Mike Leung Kit-man, director of Wocom Securities. “Given that Hong Kong’s commercial real estate market remains sluggish, being able to sell shares at this price is unlikely to face much opposition from Hang Seng’s shareholders.”
Hang Seng Bank’s shareholders included banks, investment advisers, pension funds and individual investors, accounting for 89.5 per cent, 10 per cent, 0.4 per cent and 0.1 per cent of ownership, respectively, according to Bloomberg data. More than 89 per cent of the shareholders are based in Hong Kong, followed by 6.1 per cent in the US and 1.1 per cent in Norway, with investors from other regions each holding less than 1 per cent. It had 15,544 shareholders at the end of 2024, according to the bank’s annual report.
