<div id="readability-page-1">HSBC Holdings will host two meetings early next month on its US$14 billion buyout proposal to privatise subsidiary Hang Seng Bank.\nThe British banking giant announced on Monday the details of the scheme document regarding the privatisation of Hang Seng Bank at HK$155 per share proposed on October 9.\nThe court meeting and the general meeting of Hang Seng Bank shareholders will be held sequentially from 10.30am on January 8 in Hong Kong. The results of the shareholder votes at both meetings will be revealed the same day, the bank said.\n“We see a compelling opportunity to create greater alignment, while respecting the heritage and customer proposition of Hang Seng Bank,” HSBC Group CEO Georges Elhedery said in the statement. “We will invest further in our relative strengths to respond quickly to market and customer needs as we serve Hong Kong’s many growth opportunities ahead.”\n\n\nSomerley Capital, the independent financial adviser, concluded that the offer price provides a premium within the range of premiums from recent successful privatisations in the city.\nHSBC offered Hang Seng Bank’s shareholders a 30 per cent premium over the closing price of HK$119 on the last trading day before the merger announcement.\nThe adviser considered HSBC’s proposal as the best reasonable offer, with the British bank reiterating that it would not raise the offer and that it planned to forego share buy-backs for three quarters to recover its core capital.\nIn a statement on Monday, Hang Seng Bank said an independent board committee – formed to assess the privatisation plan and based on Somerley’s advice – had deemed the proposal “fair and reasonable” and recommended that disinterested shareholders vote in favour at the forthcoming meetings.\nHang Seng Bank’s shares rose 0.2 per cent to HK$153.30 on Monday, further narrowing the spread from the offer price to 1.1 per cent. HSBC’s shares fell about 1 per cent to HK$116.30.\nWhile some market observers had earlier suggested that HSBC’s proposal was intended to address Hang Seng Bank’s bad loans, Elhedery rejected the suggestions, saying the buyout offer was unrelated to its subsidiary’s non-performing loans.\nHe said Hang Seng Bank’s privatisation plan was meticulously prepared over several months.\nHang Seng Bank, headquartered in Hong Kong, was founded on March 3, 1933, by four Chinese businessmen including Lam Bing-yim and Ho Sin-hang. In 1965, HSBC acquired a 51 per cent stake in the lender.\nHang Seng Bank later went public on the Hong Kong stock exchange on June 20, 1972, becoming the first bank in the city to list after World War II.\n</div>

HSBC

00005

00011

HSBA

<p>HSBC Holdings will hold two meetings on January 8 regarding its US$14 billion proposal to privatize Hang Seng Bank at HK$155 per share. The independent financial adviser deemed the offer fair and reasonable. Hang Seng Bank's shares rose 0.2% to HK$153.30, while HSBC's shares fell 1%. The proposal includes a 30% premium over the last trading price before the announcement. The results of the shareholder votes will be revealed the same day.</p>

- HSBC Holdings will hold two meetings on January 8, 2025, regarding its US$14 billion buyout proposal to privatise Hang Seng Bank at HK$155 per share.  
- The independent financial adviser, Somerley Capital, deemed the offer a reasonable premium and recommended that shareholders vote in favor of the proposal.  
- HSBC's CEO emphasized the opportunity for alignment and growth, while clarifying that the buyout is not related to Hang Seng Bank's non-performing loans.  

Hang Seng Bank shareholders to vote on HSBC buyout proposal on January 8