LONDON (dpa-AFX) - HSBC Holdings plc (HSBC) on Thursday said HSBC Asia Pacific has requested the Board of HSBC's Hang Seng Bank to propose to shareholders to privatise the bank.
In the scheme of arrangement, if the proposal is approved, Hang Seng Bank shareholders will receive HK$155 per share, and their shares will be cancelled. HSBC said, Hang Seng Bank will continue to retain its separate authorization as a licensed bank.
HSBC expects the proposal to be accretive to earnings per share, due to the removal of the minority interest earnings deduction related to Hang Seng Bank.
HSBC continues to target a 50% dividend payout ratio for 2025 based on earnings per share, excluding any significant one-off items.
The proposal is subject to certain conditions, including approval by Hang Seng Bank shareholders and sanction by the High Court.
HSBC Asia Pacific plans to finance the transaction entirely through HSBC Group's internal resources.
The Hang Seng Bank Board has set up an Independent Board Committee of five independent directors to assess the proposal and guide shareholders on whether to vote in favor.
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