By Joanne Chiu
Hang Seng Bank Ltd. (0011.HK) agreed to sell most of its stake
in China's Industrial Bank Co. for as much as 16.81 billion yuan
(US$2.7 billion).
The Hong Kong lender, which is controlled by HSBC Holdings PLC
(0005.HK), said it signed an agreement with Goldman Sachs Gao Hua
Securities Co. and UBS Securities Co. to sell a stake of up to
4.99% in the Shanghai-listed bank to a group of institutional
investors, leaving its holding in the Chinese lender at around
0.88% after the share placement.
Hang Seng Bank said it would sell up to 950.7 million shares in
the Chinese lender at an offer price of CNY17.68 apiece. The bank
expects to book a net gains of HK$7.60 billion from the latest
stake sale and plans to use the net proceeds to fund future
expansion.
The stake sale is the second time that the Hong Kong lender has
reduced its stake in the Chinese bank so far this year, as it seeks
to capitalize on a recent rally in mainland stocks.
Hang Seng Bank in February sold a 5.00% stake in Industrial Bank
for around CNY12.73 billion.
Write to Joanne Chiu at joanne.chiu@wsj.com
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