Hong Kong's last family owned banks might go on sale after potential takeover valuations approached levels that were last seen during the height of the 2008 financial crisis.
After announcing that its shareholders were in discussion for a possible sale last week, Wing Hang Bank Ltd. had surged 42%. Meanwhile, Chong Hing Bank Ltd. had rose 55% after disclosing approaches from interested parties last month. After having recovered from the financial crisis, the banks had opened their doors into an international hub for trade in China's currency, said a Bloomberg report.
Wing Hang which was seen to be more profitable than Chong Hing, could get as much as three times its current book valued. This was according to BNP Paribas SA and Mizuho Financial Group Inc. That would mean a value of USD7.9 billion. This was 68% more than the lender's price tag in the market last week. According to a data compiled by Bloomberg, no corporate bank takeover had taken such a multiple in more than five years.
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