Hang Seng Bank’s shares surged nearly 30% in the morning session on Thursday after HSBC Holdings announced plans to acquire full ownership of the Hong Kong lender at a premium price, valuing at over HK$290 billion.
HSBC, which currently holds a 63% stake in Hang Seng Bank, has requested that the bank’s board propose a privatization plan to shareholders under Hong Kong’s Companies Ordinance. According to HSBC’s statement, shareholders would receive HK$155 per share—a 33% premium to Hang Seng Bank’s 30-day average price of HK$116.5.
The proposed transaction would see existing Hang Seng shares canceled, effectively valuing HSBC’s buyout at HK$106 billion. HSBC shares in Hong Kong, however, retreated more than 5% following the announcement.
Under the terms revealed, the offer price is subject to adjustment for any dividends declared after the announcement, with the exception of Hang Seng’s third interim dividend for 2025.
Hang Seng Bank plays a critical role as a regional arm for the London-headquartered HSBC, with a significant footprint across Hong Kong’s banking landscape. The information was confirmed by HSBC in its official release.
