China Minsheng Banking Corp buys into Hong Kong financial firm Quam for HK$13b
China Minsheng Banking Corp on Friday announced the purchase of 23 billion new shares of Hong Kong-listed financial firm Quam with connected parties for HK$13 billion, or 56.5 HK cents per share.
The deal will make the Chinese bank, through its wholly owned subsidiary CMBC International, the single biggest shareholder of Quam.
In the deal, the bank will buy 8.9 billion, or 38.46 per cent, of new Quam shares for HK$5 billion. CMBC International employees will buy 156 million new Quam shares for HK$88.14 million, and another 164 million new shares will be subscribed by King Ace, owned by the Quam Trustee, for HK$92.66 million, according to a statement published on the website of the Hong Kong stock exchange.
CMBC International will also make a mandatory unconditional general offer in cash for all the issued Quam shares it or other parties acting in concert do not own at HK$1.38 per share. Quam warrants will be bought by Somerley, on behalf of CMBC International, at HK$1.18 each in cash, and options at 61.77 HK cents.
CMBC International and the co-investors agree to restore the minimum 25 per cent public float of Quam.
The introduction of connected acquirers will boost the capital base of Quam to become a leading Chinese-funded investment bank in Hong Kong, and may also bring synergies and facilitate the business growth of Quam, Minsheng said.
A non-legally-binding memorandum of understanding was signed in April, which stirred expectation that Hong Kong financial firms will grow in appeal as takeover targets for rivals in China seeking opportunities from the globalisation of Chinese capital.
