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OCBC offers US$4.95 bn for Hong Kong's Wing Hang bank

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(Globalpost/GlobalPost)

Singapore's Oversea-Chinese Banking Corp. (OCBC) said Tuesday it has offered to buy Hong Kong's Wing Hang bank for $4.95 billion as it seeks to boost its presence in the giant Chinese market.

OCBC said in a statement it had made the "pre-conditional voluntary general offer" to acquire Wing Hang through its wholly owned subsidiary OCBC Pearl Limited.

OCBC offered to buy each Wing Hang share at HK$125, or a total of HK$38.43 billion (US$4.95 billion) "in cash".

The Singapore bank said it has "sufficient financial resources" to finance the deal.

The offer price gives a 1.6 percent premium to Wing Hang shares as of their last closing price of HK$123, and about 67.3 percent over the 90-day average price, OCBC said in a statement to the Singapore stock exchange.

OCBC said the acquisition would strengthen its "strategic goal of deepening its presence in its four core markets -- Singapore, Malaysia, Indonesia and the greater China region" comprised of the mainland, Hong Kong, Macau and Taiwan.

It said the offer was "subject to certain pre-conditions being satisfied, including the obtaining of regulatory approvals".

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http://www.globalpost.com/dispatch/news/afp/140401/ocbc-offers-us495-bn-hong-kongs-wing-hang-bank