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Hang Seng Bank Completes Sale Of Shares In Asian Lender
Hang Seng Bank completes its sale of a stake in another Asian lender.
Hang Seng Bank has completed its sale of shares in Industrial Bank – accounting for around 4.99 per cent of ordinary shares in the latter bank – for a total of around RMB16.81 billion ($2.71 billion).
As a result of the transfer, Hang Seng holds around 0.88 per cent of the ordinary shares of Industrial Bank, according to a statement from Hang Seng Bank yesterday.
The decision to make the sale was originally announced in February this year.
The transaction is an opportunity for Hang Seng Bank, it said, to realise part of its investment in Industrial Bank, taking into account existing market conditions. It also boosts Hang Seng Bank’s capital position.
The original stake in the bank was acquired for RMB1.7 billion in
2004, giving the firm at the time a 16 per cent stake; further
acquisitions happened in 2010 via subscription to a rights issue;
the stake was diluted in 2013 through a private placement by
Industrial Bank.
