Additional Investment in The Bank of East Asia, Limited(1/1)
September 5, 2014
Sumitomo Mitsui Banking Corporation
Additional Investment in The Bank of East Asia, Limited
TOKYO,
September 5, 2014 --- Sumitomo Mitsui Banking Corporation (SMBC, President
& CEO: Takeshi Kunibe) announced today that it has entered into a
non-binding Memorandum of Understanding (MoU) with The Bank of East Asia,
Limited (BEA, Chairman & Chief Executive: Dr. David K. P. Li) to increase its
investment in BEA, one of the largest commercial banks in Hong Kong, through a
subscription of some 222,000,000 new shares, subject to certain regulatory approvals being obtained,
after which the two banks will commence discussions on entering into legally
binding definitive documentation reflecting the detailed terms and conditions
of the proposed subscription (gDefinitive Agreementsh).
SMBC
currently holds 9.6% of the total issued shares of BEA. Upon the completion
of the proposed subscription, it will hold approximately 17.5% of the then total
issued shares of BEA. In addition, subject to relevant approvals being
obtained, SMBC plans to have a representative of SMBC on the board of BEA.
1. Summary
of MoU
|
(1)
Number
of Shares |
: Some 222,000,000 shares, which would increase
SMBC's investment in BEA to approximately 17.5% of BEA's then total issued
shares |
|
(2)
Subscription
Price@ |
: To be
determined by reference to the volume weighted average price of BEA shares as
quoted on the Hong Kong Stock Exchange over a prescribed period before the
Definitive Agreements are entered into |
|
(3)
Subscription Conditions |
: Regulatory
approvals, the conclusion of the Definitive Agreements, and the fulfillment or waiver of all conditions precedent
of the Definitive Agreements |
|
(4)
Subscription
|
: Upon
receiving regulatory approval |
2.
Company
Profile: The Bank of
|
Year Founded |
: 1918 |
|
Headquarters
Location |
: |
|
Global Network |
: 89 branches in HKSAR, 126 branches in PRC and 9 branches
in other locations * |
|
Total Assets |
: HKD805,349,000,000 (JPY 10 trillion equivalent)* |
|
Capital
Adequacy Ratio |
: Tier
1 capital ratio – 12.2% and total
capital ratio – 15.7%* |
|
Listing |
: |
|
Ratings |
: A (S&P), A2 (Moodyfs) |
*As of June 30, 2014
