Wing Hang Bank is likely to pay up to HK$4.73 billion if it goes ahead with the purchase of Chekiang First Bank from Japan's Mizuho Financial Group, according to analysts. The mid-tier lender this week said it had entered into exclusive negotiations with Mizuho, taking the planned sale of unlisted Chekiang - first announced in May - one step closer to completion. Sun Hung Kai Research banking analyst Maggie Choi said Wing Hang might be willing to pay between book value and 1.2 times book for Chekiang, or HK$3.94 billion to $4.73 billion. This compares with an offer price of HK$5 billion, according to some reports. 'I don't see huge synergies from a merger that would justify 1.3 times book,' Ms Choi said. 'Chekiang has more commercial lending but the match is not perfect as both of the banks have substantial home loan exposure.' Another analyst said he expected Wing Hang to pay at most HK$4.3 billion for Chekiang. Ms Choi said Mizuho was not likely to let Chekiang go for anything less than its book value, as the Japanese bank needed to make up the huge losses it incurred last year. A marriage between Wing Hang and Chekiang would create a bank with about US$11 billion in assets. Wing Hang would jump from being the 10th largest locally-listed lender to sixth. DBS Vickers banking analyst Tony Liu said an enlarged customer base would give Wing Hang a better starting point to expand in China. Wing Hang shares yesterday fell 3.8 per cent to HK$27.80.