Interest in HKCB

The Bank of East Asia will be interested in bidding for Hongkong Chinese Bank (HKCB) if the price is right, according to chairman David Li Kwok-po.

China Resources Enterprise (CRE) has put its 64.8 per cent stake up for sale. A number of offers are believed to have been made, though none has met the price CRE is reputed to have set, a 1.5 times premium to the HK$2.92 book value.

That would price the 875.797 million HKCB shares at about HK$3.84 billion and bidders have baulked. A general offer at this level means a HK$5.92 billion tag on the bank, capitalised at HK$5.06 billion at yesterday's HK$3.75 close.