OCBC Denies Binding Deal To Buy Hong Kong Bank; Says Has Entered Exclusive Agreement

Tom Burroughes

7 January 2014

Oversea-Chinese Banking Corp has entered an exclusive agreement that, depending on discussions, could lead to the Asian lender buying all the shares of Wing Hang Bank, it said yesterday, responding to media reports. It denied press reports issued a few days ago saying it had forged a binding agreement.

Local media in Asia had reported that OCBC – the parent of Bank of Singapore, the private bank – had put in a binding bid for Wing Hang Bank. Other rumoured suitors, reports said, were Agricultural Bank of China, China Minsheng Bank and China's Anbang Insurance.

However, in its statement, OCBC said: “No binding statement in relation to the possible offer has at this stage been entered into by OCBC with the substantial shareholders or WHB.”

It said it was continuing to talk to major shareholders and no definitive terms or formal legal documents for the possible offer have yet been agreed; any purchase would in any event would have to be cleared by the relevant regulators, such as the Monetary Authority of Singapore and the Hong Kong Monetary Authority.

“Shareholders are further advised to exercise caution when dealing in the shares of OCBC and to refrain from taking any action in respect of their investments which may be prejudicial to their interests,” the statement from OCBC said.

OCBC said it will make further statements in due course when necessary.

Reports said the family of WHN chairman and chief executive Patrick Fung Yuk-bun and Bank of New York Mellon, which together control 45 per cent of Wing Hang, first announced in September that they had entered into discussions with third parties to sell their stake.