CW8888: So OCBC is playing catch-up but way behind DBS?
OCBC Bank said on Monday that it had entered into "an
exclusivity agreement" with the substantial shareholders of Wing Hang
Bank on Dec 31, 2013 - PHOTO: REUTERS
OCBC Bank said on Monday that it had entered into "an
exclusivity agreement" with the substantial shareholders of Wing Hang
Bank on Dec 31, 2013, with a view to taking over the Hong Kong bank.
Wing Hang's substantial shareholders are members of the Fung family, its affiliates and related family trusts, and BNY International Financial Corporation. The exclusive arrangement will last until the end of January 2014.
OCBC did not say how much it intends to pay for Wing Hang.
News reports late last week and over the weekend said OCBC had offered less than the two times book value Wing Hang was seeking.
Wing Hang's substantial shareholders are members of the Fung family, its affiliates and related family trusts, and BNY International Financial Corporation. The exclusive arrangement will last until the end of January 2014.
OCBC did not say how much it intends to pay for Wing Hang.
News reports late last week and over the weekend said OCBC had offered less than the two times book value Wing Hang was seeking.
Posts
OCBC is a bank which I always admire. Will be loading up this counter onec valuation become attractive.
ReplyDeleteThank you for the update!
Regards,
Gerald
www.sgwealthbuilder.com
ReplyDeleteFrom UOBKayHian
Reminiscent of DBS’s acquisition of Dao Heng Bank. The deal reminds investors of DBS’s acquisition of Dao Heng Bank at P/B of 3.1x in Apr 01.
At that time, DBS was trading at P/B of 1.7x and the P/B gap was a whopping 1.4x. DBS’s ROE dropped from 12.9% in 2000 to 8.8% in 2001 and 7.2% in 2002. DBS managed to improve its ROE to 10.3% in 2003.
Fortunately, the P/B gap for OCBC’s planned acquisition of WHB is expected to be smaller at 0.4x.