Bank of East Asia (BEA) and Industrial and Commercial Bank of China (ICBC) will sell down their holdings in jointly owned ICEA Securities to other international investment banks to fund further ICEA expansion.
Local merchant bank ICEA has sponsored several companies to list on the Growth Enterprise Market. BEA owns 25 per cent of ICEA, while ICBC, China's biggest bank, holds 60 per cent. The remaining 15 per cent is held by ICEA management.
BEA executive director and deputy chief executive Chan Kay-cheung said ICEA had talked to potential investors, but no decision had been made.
It was rumoured that up to 30 per cent of the three shareholder groups' holdings would be sold.
Proceeds from the disposals will support ICEA's underwriting business and expand overseas operations.
Its new partners will help boost its international standing.
Meanwhile, BEA was again at the centre of speculation regarding the sale by First Pacific of its 41.3 per cent stake in First Pacific Bank.