HSBC proposes to privatize subsidiary Hang Seng Bank, valuing it at $37.36 billion

HSBC said it has asked the Hang Seng Bank board to submit a privatization proposal to shareholders through a scheme of arrangement under the Hong Kong Companies Ordinance.

Shares in Hang Seng Bank, a subsidiary of HSBC, would be canceled in exchange for 155 Hong Kong dollars ($19.78) each, valuing the bank at about HK$290.74 billion.

“One of HSBC's strategic priorities is to grow in Hong Kong,” the bank said in its filing statement, adding that it believes it is “best positioned” to do this by strengthening the presence of both HSBC Asia Pacific and Hang Seng Bank in Hong Kong.

Hang Seng Bank is a core regional unit for HSBC, with a substantial presence in the Hong Kong banking sector

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