HSBC's plan to take Hang Seng private wins committee approval

(Sharecast News) - HSBC's proposal to take Hang Seng private in a £10bn deal has been approved by an independent board committee, paving the way for shares in the Hong Kong lender to be delisted late next month. The UK banking giant, which announced the potential deal back in October, said on Monday that the independent committee had deemed the proposal "fair and reasonable".

HSBC already owns over 63% of Hang Seng but is wanting to buy up the remaining shares it does not currently own for HKD106.2bn (£10.2bn) or HKD155 a share.

The offer represents a 33.1% premium to the 30-day average before the proposal was first announced, and values the Hong Kong lender at HKD290bn (£27.9bn).

"We are delighted to receive these important recommendations. Our intention to privatise Hang Seng Bank is an investment for growth in a home market we know very well," said HSBC chief executive Georges Elhedery, who has recently pledged to expand the bank's network through acquisitions, while selling off non-core businesses.

"We see a compelling opportunity to create greater alignment, while respecting the heritage and customer proposition of Hang Seng Bank. 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 aheadl" Elhedery said.

HSBC shares were up around 1% at 1,122.18p by 1040 GMT.