On Thursday, HSBC announced its proposal to privatize Hang Seng Bank, in which it holds a controlling stake, valuing the bank at over HKD 290 billion (USD 37 billion).

HSBC has requested the Hang Seng Bank board to submit a privatization proposal to shareholders through a scheme under Hong Kong’s Companies Ordinance.

Hang Seng Bank shares will be canceled at HKD 155 per share. HSBC owns about 63% of Hang Seng Bank, valuing the deal at HKD 106 billion.

The offer allows adjustments reflecting any profits declared after the announcement date, except for Hang Seng’s third interim profit for 2025.

HSBC confirmed that the entire deal will be funded from its internal resources and expects the transaction to be accretive to its earnings.

The bank stated in its financial release that “one of its strategic priorities is growth in Hong Kong,” adding that it believes it is in the “best position” to achieve this by strengthening the banking presence of both HSBC Asia-Pacific and Hang Seng Bank in Hong Kong.

Hang Seng Bank is a key regional unit of HSBC, headquartered in London, with a strong presence in Hong Kong’s banking sector.