- POSTED: 15 Jul 2014 22:26
OCBC Bank issued a voluntary "no price increase" statement in a filing to the Singapore Exchange.
SINGAPORE: OCBC Bank says it will not increase its offer price for Wing Hang Bank in its bid to take full control of the Hong Kong lender. Bankers acting for OCBC Bank issued a voluntary "no price increase" statement in a filing to the Singapore Exchange (SGX) on Tuesday (July 15). OCBC says the offer price will remain at HK$125 per Wing Hang Bank share.
Market watchers say the move shows that OCBC is standing firm to its ground amid an ensuing tussle with hedge-fund firm Elliott Management.
OCBC's cash offer deal to acquire all the shares of Wing Hang Bank was complicated this month when Elliott Management reportedly raised its stake in the Hong Kong lender to nearly 8 per cent.
Under Hong Kong rules, OCBC must receive roughly 90 per cent of Wing Hang shares to delist the Hong Kong lender. Meanwhile, OCBC would have to maintain a stake of not more than 75 per cent in Wing Hang if it plans to control the bank as a public-listed subsidiary. Currently, OCBC has about 50.40 per cent shares in Wing Hang.