HSBC Holdings has advanced its plan to privatize Hang Seng Bank, proposing to buy out the roughly 36.5% of shares it doesn’t already own in the Hong Kong‑listed lender. An independent board committee of Hang Seng Bank has deemed HSBC’s $13.6 billion buyout offer “fair and reasonable” and recommended minority shareholders back the deal.
Under the terms of the proposal, HSBC is offering HK$155 per share, representing about a 30 % premium over Hang Seng’s trading price prior to the deal announcement and valuing the bank at roughly HK$290 billion (about US$37 billion). If approved, Hang Seng will be delisted from the Hong Kong Stock Exchange and become a wholly owned subsidiary of HSBC, enhancing operational alignment in the region.
The privatization is positioned as part of HSBC’s strategic focus on strengthening its market presence iBn Hong Kong and Asia, while simplifying its business structure. Shareholders are set to vote on the proposal early next year, with delisting expected to follow upon regulatory and court approvals.