Guoco Group has methodically built up its stake in Bank of East Asia in a steady and cost-conscious manner that bankers say is typical of the conglomerate's investment approach.
Guoco, led by Malaysian chairman Quek Leng Chan, has snapped up BEA stock throughout the year, adding a chunk of the bank after its share price fell in the wake of last year's financial crisis.
It disclosed last week that it had subsequently raised its stake in the lender above 8 per cent, entrenching its position as the second-largest shareholder in the bank.
Guoco's announcement has prompted speculation of a possible bidding war over control for BEA that has powered a surge in its share price. The lender has advanced 18.6 per cent so far this week and completed its largest one-day gain in 11 years on Wednesday.
More than HK$2.5 billion worth of BEA stock changed hands in the past two days.
'By reputation, Guoco is a very savvy, very shrewd investor,' said a banker familiar with the company. 'And they are still sitting on a big pot of cash, so they have the opportunity to make some deals.'
A Guoco spokesman reiterated that BEA was one of the group's strategic investments, but declined to say whether the conglomerate would further increase its holding in Hong Kong's biggest locally owned bank.