OCBC offers US$4.95 bn for Hong Kong's Wing Hang bank

[nutbush]

https://sg.finance.yahoo.com/news/ocbc-offers-us-4-95-012423958.html

Singapore's Oversea-Chinese Banking Corp. (OCBC) said Tuesday it has offered to buy Hong Kong's Wing Hang bank for $4.95 billion as it seeks to boost its presence in the giant Chinese market.
OCBC said in a statement it had made the "pre-conditional voluntary general offer" to acquire Wing Hang through its wholly owned subsidiary OCBC Pearl Limited.
OCBC offered to buy each Wing Hang share at HK$125, or a total of HK$38.43 billion (US$4.95 billion) "in cash".
The Singapore bank said it has "sufficient financial resources" to finance the deal.
The offer price gives a 1.6 percent premium to Wing Hang shares as of their last closing price of HK$123, and about 67.3 percent over the 90-day average price, OCBC said in a statement to the Singapore stock exchange.
OCBC said the acquisition would strengthen its "strategic goal of deepening its presence in its four core markets -- Singapore, Malaysia, Indonesia and the greater China region" comprised of the mainland, Hong Kong, Macau and Taiwan.
It said the offer was "subject to certain pre-conditions being satisfied, including the obtaining of regulatory approvals".

 

[erection2015]

market seems to accept it....no more selldown since trading halt.

https://sg.finance.yahoo.com/news/ocbc-offers-us-4-95-012423958.html

Singapore's Oversea-Chinese Banking Corp. (OCBC) said Tuesday it has offered to buy Hong Kong's Wing Hang bank for $4.95 billion as it seeks to boost its presence in the giant Chinese market.
OCBC said in a statement it had made the "pre-conditional voluntary general offer" to acquire Wing Hang through its wholly owned subsidiary OCBC Pearl Limited.
OCBC offered to buy each Wing Hang share at HK$125, or a total of HK$38.43 billion (US$4.95 billion) "in cash".
The Singapore bank said it has "sufficient financial resources" to finance the deal.
The offer price gives a 1.6 percent premium to Wing Hang shares as of their last closing price of HK$123, and about 67.3 percent over the 90-day average price, OCBC said in a statement to the Singapore stock exchange.
OCBC said the acquisition would strengthen its "strategic goal of deepening its presence in its four core markets -- Singapore, Malaysia, Indonesia and the greater China region" comprised of the mainland, Hong Kong, Macau and Taiwan.
It said the offer was "subject to certain pre-conditions being satisfied, including the obtaining of regulatory approvals".

 

[nutbush]

barriers expected to clear the regulations in china, so price will encounter hiccup for a while before it chiong.

btw, sti has reached 3200, psychological level, maybe time to sell any you have in hands. historical high...

market seems to accept it....no more selldown since trading halt.

 

[erection2015]

i have a lot of ocbc shares.......a lot = 1 lot :(

barriers expected to clear the regulations in china, so price will encounter hiccup for a while before it chiong.

btw, sti has reached 3200, psychological level, maybe time to sell any you have in hands. historical high...

 

[nutbush]

all my money a few grand stuck in forex open position, so i am only speculating on air...:o

ocbc is $9.60 now...0955hrs

sell! another red for hsbc manufacturing pmi @ 48

i have a lot of ocbc shares.......a lot = 1 lot :(

 

[nutbush]

OCBC's Chinese ambition comes with hefty price tag: Reuters
Oversea-Chinese Banking Corp is paying a hefty price to expand in the People's Republic. The Singaporean group is realising a long-held ambition by splashing out almost $5 billion for Hong Kong's Wing Hang bank. But the deal looks expensive at a time when growth on the mainland is slowing and the U.S. Federal Reserve's tapering is threatening to push up deposit costs.
It's no surprise that Wing Hang has chosen to sell after 77 years of family control. Despite a multi-year boom fuelled by low interest rates in Hong Kong and growth in China, the bank's return on equity last year was a pedestrian 10 percent. But the relative shortage of local takeover targets means its value has soared. After stripping out mark-to-market gains on Wing Hang's property portfolio, and subtracting the recently announced full-year dividend, OCBC's HK$125-a-share cash offer values the second-tier bank at more than two times its December book value.
OCBC, which has a slightly higher ROE, trades at just 1.3 times
its net worth.
Moreover, there's little immediate scope to boost performance. OCBC's presence in Hong Kong is limited, and anyway it has promised not to force job cuts for 18 months. In mainland China, where the purchase will double OCBC's branch network, the emphasis is on expansion rather than cost reduction.
OCBC is keen to stress the growth potential from the deal. Wing Hang gives it greater opportunity to finance trade between China and other parts of Asia such as Malaysia and Indonesia, where it already has a foothold. Wing Hang's strong funding base - loans were just 73 percent of deposits at the end of last year - is another advantage, as is its ability to capitalise on the yuan's growing international popularity. About 17 percent of Wing Hang's deposits are currently in the Chinese currency.
Nevertheless, the purchase brings risks to OCBC investors. China's economic slowdown is creating credit wobbles, while Hong Kong's property boom is bound to have led to some lending excesses. Meanwhile, rising interest rates in the United States could reverse the cheap deposits that have flowed into both Hong Kong and Singapore in recent years. Shareholders, who will probably be asked to help finance the purchase, may pay a high short-term price for OCBC's long-term China ambition.

 

[Muthukali]

all my money a few grand stuck in forex open position, so i am only speculating on air...:o

ocbc is $9.60 now...0955hrs

sell! another red for hsbc manufacturing pmi @ 48

Stay tune, this Friday @ 2030pm, you are going to drop your pants. Chok deee

 

[nutbush]

they are expecting positive for non-farm payroll, i have always backed usd...we shall see

Stay tune, this Friday @ 2030pm, you are going to drop your pants. Chok deee

 

[po2wq]

... price will encounter hiccup for a while before it chiong ...

can buy ocbc, ah? ...

 

[nutbush]

maybe long term...but now china slowed down, i think better short cfd better.

can buy ocbc, ah? ...

 

[po2wq]

maybe long term...but now china slowed down ...

china can stimulate demselves 2 shoot hi-hi wat! ...

 

[nutbush]

ya, that's what they have been saying for the past 2 weeks but no action yet. so ocbc must bet on them to stimulate their economy if not sure eat grass. imho, i think it's too risky to buy ocbc now. if theychoose to stimulate, mean rmb have to be cheaper which means interest rate will be lower across the board. so there is no gain this deal. unless ocbc knows something which we dun know.

Quoted:

"China's economic slowdown is creating credit wobbles, while Hong Kong's property boom is bound to have led to some lending excesses. Meanwhile, rising interest rates in the United States could reverse the cheap deposits that have flowed into both Hong Kong and Singapore in recent years. Shareholders, who will probably be asked to help finance the purchase, may pay a high short-term price for OCBC's long-term China ambition."

china can stimulate demselves 2 shoot hi-hi wat! ...

 

[whoami]

It was a split stock. At current level, expensive.

 

[Taboo]

It was a split stock. At current level, expensive.

You mean OCBC?

 

[whoami]

You mean OCBC?

Yup. I rather load Dbs.

 

[nutbush]

these banker scums really know something we dun know, latest is that there is mini stimulus from china and now this:

Three banks offer $4.95 billion bridge loan for OCBC's Wing Hang deal: sources

http://www.reuters.com/article/2014/04/02/us-winghang-ocbc-loans-idUSBREA310JF20140402

 

[nutbush]

China Unveils Mini-Stimulus Measures

http://online.wsj.com/news/articles/SB10001424052702303847804579477060004679726

BEIJING—China announced a package of mini-stimulus measures to help support the economy as growth appears to be losing steam.

China's State Council, or cabinet, agreed to offer more tax relief to smaller companies, promised to push ahead with reforms of the railway system and pledged to upgrade housing for low-income households, state media reported Wednesday.

The Chinese economy expanded 7.7% last year, well below its growth of recent years. The government has set a target of about 7.5% this year but many economists say economic growth may fall short of that objective.

So far data for the first quarter have been disappointing. More signs of a slowdown came Tuesday with the release of weak property figures and less-than-stellar readings for manufacturing activity in March.

"The external and internal economic conditions remain complicated," state television reported, citing the State Council. It added that the government needs to achieve its economic objectives for the year stated by Premier Li Keqiang at the annual session of Parliament in March.

These included the 2014 growth target and a commitment to create 10 million new jobs while keeping urban unemployment below 4.6%.

On Wednesday, Beijing pledged to extend existing tax breaks to small businesses until the end of 2016. It said it would also raise the threshold for taxing smaller businesses, which have been struggling as economic growth slows.

The government also vowed to speed up railway construction, particularly in the nation's central and western regions, and offer more financing channels for the railway system.

Beijing also said it would upgrade housing for low-income households and expand its slum clearance program. It said it would bring in China Development Bank and other financial institutions to provide funding for the project.

Write to Liyan Qi at [email protected]

 

[ykhuser]

i thought u mean pay 4.95 billion to the cyclist who died

 

[Tuayapeh]

as long as Ho Jinx is not buying, got chance to make some money....otherwise hong gan liao