Hang Seng Bank shareholders greenlight buyout plan by HSBC

HSBC Asia Pacific to Privatise Hang Seng Bank

In a landmark move, shareholders at Hang Seng Bank have given their approval for a privatisation plan proposed by HSBC Asia Pacific, a significant part of the HSBC Group. This decision brings about a pivotal change in the bank’s ownership structure and its future operations.

Details of the Privatisation Plan

The privatisation proposal was first made public in October 2025, and it values Hang Seng Bank at an estimated HK$106.1bn (equivalent to $13.63bn at that time). The scheme proposes that HSBC Asia Pacific will acquire all remaining shares currently held by minority shareholders at a rate of HK$155 per share.

Shareholders’ Voting and Approvals

In a recent court meeting, around 86% of votes from non-interested parties, as defined by the Hong Kong Code on Takeovers and Mergers, supported the transaction. Furthermore, all necessary approvals under both the Hong Kong Companies Ordinance and the Hong Kong Takeovers Code have been secured successfully.

Next Steps in the Process

With these steps completed, a hearing in the High Court is scheduled for 23 January 2026, where it will be decided whether to sanction the scheme. Subject to court approval and other standard conditions outlined in official documents, the scheme could take effect on 26 January 2026.

Delisting from the Hong Kong Stock Exchange

Following the approval of the scheme, the process to delist Hang Seng Bank shares from the Hong Kong Stock Exchange will commence, with an effective date anticipated for 27 January 2026. As per local listing requirements, Hang Seng Bank’s shares will no longer be listed on the Hong Kong Stock Exchange.

Hang Seng Bank’s Future within HSBC Group

Upon completion of these steps, Hang Seng Bank will become a wholly owned subsidiary of HSBC Asia Pacific. This means that it will be fully integrated within the HSBC Group, changing the dynamics of its operations and potentially opening new avenues for growth.

HSBC Group CEO’s Statement

HSBC Group CEO Georges Elhedery expressed satisfaction with the shareholders’ decision. He said, “We are pleased with the approval of the proposal and grateful to Hang Seng Bank shareholders for their continued support. The approval reflects strong confidence in Hang Seng Bank’s franchise and in the opportunities that full ownership within the HSBC Group can unlock. We look forward to progressing this proposal and fulfilling the remaining conditions, and will provide further updates in due course.”

This significant development in the banking sector reflects the strategic moves multinational banks are making to strengthen their foothold in different markets. The full implications of this move will unfold in the years to come, potentially shaping the landscape of the banking industry in Asia.

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