OCBC’s bid for Wing Hang now unconditional

SINGAPORE — Oversea-Chinese Banking Corp’s (OCBC) HK$38.4 billion (S$6.17 billion) deal to take over Wing Hang Bank has turned unconditional, after its stake in the family-owned lender crossed 50 per cent.

But OCBC’s proposition to delist Wing Hang from the Hong Kong Stock Exchange could be in a pickle after hedge-fund firm Elliott Management raised its stake to nearly 8 per cent, the Wall Street Journal reported.

What is uncertain is whether OCBC will gain the roughly 90 per cent of shares needed under Hong Kong rules to squeeze out the remaining 10 per cent and delist Wing Hang.

In a filing with the Hong Kong Securities and Futures Commission, Elliott said it had bought an additional 8.7 million Wing Hang shares this week for HK$125 each, bringing its stake in the company to 7.8 per cent.

Elliott, run by billionaire Paul Singer, is known for an activist bent and agitating for a sale or board shake-up in companies in which it invests, pushing stock prices higher.

OCBC, Wing Hang and Elliott declined to comment.

OCBC said last week it had received the green light from regulators in Hong Kong, Singapore and Macau to acquire Wing Hang.

As of yesterday, OCBC had gained a 50.4 per cent interest in Wing Hang, mainly through acceptances of its offer, it said in a statement to the Singapore stock exchange.

OCBC’s offer to buy Wing Hang shares at HK$125 apiece was conditional on its receipt of enough acceptances to lift its Wing Hang stake above 50 per cent. The offer will stay open until July 29, the filing said. Wing Hang shares closed at HK$125.80 yesterday.

The deal is set to be the biggest banking acquisition in Hong Kong since DBS’ takeover of Dao Heng Bank in 2001 and will help OCBC profit from the rapid internationalisation of the yuan. Hong Kong is the world’s biggest offshore hub for the Chinese currency, with deposits amounting to more than 800 billion yuan (S$160 billion).

With a network of 70 branches, including 42 in Hong Kong and 13 in Macau, Wing Hang offers OCBC an instant gateway to the booming Pearl River Delta region. Agencies