HSBC attempts to convert Seng into a private bank with a valuation of up to $ 37 billion

HSBC Holdings plans to take Hang Seng Bank Private through all the shares it does not yet own and buy it from the stock exchange, in an agreement that appreciates the bank at $ 37 billion, which increases its focus in Hong Kong, as the financial center wants to recover after years of economic turmoil. The price was fixed at HK $ 155 (US $ 19.92) per cash, an increase of about 30% compared to the last closing price, HSBC said in a statement on Thursday. Shares listed on the stock exchange will be canceled in terms of this proposal. “This proposal is a significant investment in Hong Kong, which emphasizes our confidence in the growth potential of both HSBC in the Asia -Pacific and Hang Seng Bank,” HSBC explained. “This proposal provides opportunities for more investment and improved operational capacity.” Buying the remaining stake for $ 14 billion HSBC, based in London, currently owns about 63% of Hang Seng Bank shares and will pay about $ 14 billion to buy shares it does not already own. The bank plans to withhold the next three -quarters of the repurchase of shares, as it tries to restore its capital ratio to its ordinary operating range. CEO George Al-Haddari said in the statement that the move to buy the rest of Hang Seng Bank’s shares “offers greater value to shareholders than a repurchase.” Also read: HSBC chooses the Lebanese born George Al-Haddari as CEO. The agreement comes at a time when Al-Haddari leads the largest bank restructuring over the past decade. In recent years, the bank has redirected its focus to Asia and closed or sold its businesses in Europe and North America. Bet on Hong Kong amid the recovery of the market, the takeover would be a big bet on Hong Kong, as the city sees a setback in shares and other transactions, which are largely driven by companies on mainland China. Chinese President Xi Jinping has tried to use Hong Kong’s financial sector to support its industrial priorities, as companies that work in the field of electric cars and turn artificial intelligence to the city to raise money for global expansion. However, the agreement comes at a time that the Hong Kong banking sector has the pressure on the worst real estate since the Asian financial crisis experienced in the late 1990s. A proposal to set up a bank to take up bad loans. Discussions have already taken place in the sector on the construction of a bank with the aim of buying or recording bad loans, which estimates Fitch Ratings at about $ 25 billion, based on data from the Hong Kong Monetary Authority. Also read: New World is approved by lenders for a $ 11 billion refinancing. HSBC urged Seng to get rid of its bloated portfolio of distressed commercial real estate debt. The non-performing loans in the property sector rose to $ 25 billion (US $ 3.2 billion) by June 2025, an 85% increase compared to the previous year. Al-Hedari reorganized HSBC in four new divisions, leaving some companies that considered its predecessors as the key to the bank’s future, and doubled its efforts in markets such as Greater China and the Middle East. HSBC has already distributed billions of dollars to its shareholders over the past year, most of it through the repurchase of shares, which has become one of the bank’s preferred methods to distribute capital to investors.