Bank of New York Mellon has given nod to offload its stake in Hong Kong-based Wing Hang Bank, which is expected to earn the company nearly $500m.
Singaporean bank Oversea-Chinese Banking (OCBC) has recently agreed to acquire Wing Hang Bank for a per-share offer price of $16.12 accounting to $5bn, marking a 1.6% premium to Wing Hang’s closing price at the time.
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BNY Mellon, the second largest owner of the bank, has agreed to sell its stake claiming a book value of $544m at the end of March 2014 to OCBC.
The largest stakeholder Fung family and BNY Mellon, together, control about 48% of the bank.
According to a Friday regulatory filing, BNY Mellon reported income of $95m related to its stake in Wing Hang in 2013.
The conclusion of the acquisition agreement is scheduled in the third quarter.
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