HSBC Moves to Privatize Hang Seng Bank in $37 Billion Deal
Hang Seng Bank shares surged nearly 30% Thursday after HSBC unveiled plans to fully acquire its Hong Kong-listed subsidiary in a deal valuing the lender at over HK$290 billion ($37 billion). HSBC, which already holds a 63% stake, proposed canceling remaining shares for HK$155 apiece — a 33% premium over the 30-day average.
The move aims to consolidate HSBC’s Hong Kong operations, enhance regional scale, and streamline governance.
While Hang Seng soared, HSBC shares fell over 5% in both Hong Kong and London trading, as investors weighed the near-term financial impact of the transaction against its longer-term strategic value.
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