US EditionHSBC proposes to privatize subsidiary Hang Seng Bank, valuing it at $37.36 billion
HSBC offers HK$155 per share, a 30% premium valuing Hang Seng Bank at HK$290 billion to simplify operations and boost growth in Hong Kong's recovering financial market.
- On October 9, 2025, HSBC Holdings offered HK$155 per share in cash to take Hang Seng Bank Ltd. private, valuing the lender at HK$290.31 billion with a 30% premium.
- Hang Seng Bank Ltd.'s credit‑impaired loans rose to HK$25 billion as of June 2025, and HSBC said the move aims to simplify Hong Kong operations and boost efficiency as part of its Asia pivot.
- The proposal would be funded entirely from HSBC's internal resources, expected to be earnings-accretive while temporarily lowering the CET1 capital ratio by about 125 basis points, with HSBC owning about 63% and spending $14 billion to buy remaining shares.
- Market reaction was swift: Hang Seng shares rose 26% while HSBC shares fell 6%, minority shareholders would receive immediate cash, and HSBC will pause buybacks for three quarters.
- The implied valuation sits at a 1.8x 1H25A price‑to‑book, positioning the deal as a major bet on Hong Kong amid a 33% premium over the 30‑day average closing price of HK$116.5.
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35 Articles
The proposed transaction would make Hang Seng a wholly-owned subsidiary of HSBC, valued at US$37 billion. ...
HSBC proposes privatisation of Hang Seng Bank
HSBC said it planned to privatise Hong Kong's Hang Seng Bank in a deal worth HK$106.1 billion ($13.63 billion) after its majority-held subsidiary has come under fire for its performance and exposure to faltering property markets in the city and mainland China.
HSBC's Hong Kong Shares Dip After $13.6 Billion Take-Private Deal For Hang Seng Bank - IBM (NYSE:IBM), HSBC Holdings (NYSE:HSBC)
HSBC‘s (HKG: 0005) (NYSE:HSBC) (LSE: HSBA) Hong Kong shares dropped over 7% on Thursday, after the European lender announced plans to privatize its majority-owned local unit, Hang Seng Bank (HKG: 0011), in a deal valued at HK$106.1 billion (about $13.63 billion). They were last down to HK$103 per share, as the bank said it would refrain from share buybacks in the coming three quarters in order to restore its capital ratio to its operating range.…
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