Wing Hang not in merger talks but door's open
Wing Hang Bank chairman Patrick Fung Yuk-bun has told shareholders he would consider any takeover offer presented to the bank.
Questioned on the subject of a merger or acquisition after the bank's annual general meeting, Mr Fung said: 'We know the [merger and acquisition] trend is there and we will consider any proposal that comes to us.
'Management will, of course, act in the interests of shareholders, and will consider individual cases on their merits.'
Among the resolutions passed at the meeting was a mandate granted for the issue of up to 20 per cent more shares, a move which may point to a capital raising to support an acquisition.
However, Mr Fung said the bank was neither making any bids, nor was it the target of any takeover negotiations.
'The issue of capital could serve many purposes and acquisition is only one. For example, the bank could have an expansion organically that would require the issue of capital,' he added.
Mid-ranking Wing Hang closed unchanged at HK$31.80 yesterday, a share price that capitalised the bank at HK$9.33 billion and placed it eighth among Hong Kong listed banks.