The Bank of East Asia (BEA) has agreed to divest its wholly-owned subsidiary, Tung Shing Holdings to SinoPac Securities (Cayman) Holdings (SPSC).
The total consideration for the deal will be approximately HK$585m based on Tung Shing’s net value as at the end of June 2015 and the future operations synergies.
Go deeper with GlobalData
Access deeper industry intelligence
Experience unmatched clarity with a single platform that combines unique data, AI, and human expertise.
Through this acquisition, SinoPac can effectively integrate resources, centralize management and expand business development and profitability model as well as add three branches in Wan Chai and Mongkok to enhance its retail business.
Following the transaction, Tung Shing will use the resources of SinoPac to offer a financial service platform, thus offering fixed income, investment banking, asset management and fund products to customers.
Also, the Bank will continue to provide securities and futures brokerage services in Hong Kong via its subsidiaries, East Asia Securities Company and East Asia Futures.
The sale of Tung Shing, which is subject to regulatory approval from the Securities and Futures Commission of Hong Kong and the Financial Supervisory Commission of Taiwan (FSC), is expected to close on 1 March 2016.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataFurthermore, SinoPac Securities has agreed to acquire all the issued shares in BEA Wealth Management Services (Taiwan).
The sale transaction of BEA Wealth requires approval from the FSC and the Investment Commission of the Ministry of Economic Affairs in Taiwan.
The regulatory approval process for both the transactions will take approximately three to six months to complete.
SinoPac Securities chairman Chen Wei-Lung said: "The acquisition of Tung Shing can strengthen the local operation of brokerage and wealth management businesses of SinoPac Securities (Asia) Limited in Hong Kong and its long-term core competitiveness, which will in turn positively impact shareholders’ equity.
"SinoPac Securities (Asia) will continue to expand the overseas business, while assist SinoPac Securities, its parent company, to achieve its strategic goal and provide the most convenient integrated financial services to its Chinese customers in the globe."
BEA chairman & CEO David K.P. Li said: "Our disposal of shares in these two companies is part of our efforts to rationalise our securities business in Greater China region, allowing us to focus our resources on expanding our securities and futures trading businesses through our subsidiaries, East Asia Securities Company Limited and East Asia Futures Limited."
