Additional Investment in The Bank of East Asia, Limited(1/1)
March 18, 2015
Sumitomo Mitsui Banking
Corporation
Additional Investment in The Bank of East Asia,
Limited
TOKYO,
March 18, 2015 --- Sumitomo Mitsui Banking Corporation (SMBC, President &
CEO: Takeshi Kunibe) announced today that it has
agreed with The Bank of East Asia, Limited (BEA, Chairman & Chief
Executive: Dr. David K. P. Li) to increase its investment in BEA by approximately
HKD 6.6 billion. SMBC will nominate a relevant executive to BEA as a
non-executive director and BEA will become an equity method affiliate of SMBC.
The
aim of this additional investment is to expand the business base of SMBC in PRC
and Hong Kong and enhance our ability to provide financial products and
services in the region by further strengthening our relationship with BEA, one
of the largest commercial banks in Hong Kong with strength in, among others, innovative,
value-added banking services to retail and SME customers in PRC and Hong Kong.
Summary of Share
Subscription:
|
Subscription
method: |
Private
placement of new shares by BEA |
|
Number
of shares: |
222,600,000
shares (9.48% shares of existing total issued shares) |
|
Subscription
price: |
HKD
29.5576 per share |
|
Schedule: |
To
be acquired in March 2015 |
After
the subscription, SMBC’s shareholding in BEA will increase from 9.68% to 17.50%
of total issued shares of BEA (enlarged issued share capital basis).
Profile of BEA:
|
Establishment: |
1918 |
|
Location
of head office: |
10
Des Voeux Road Central, Hong Kong |
|
Global
network: |
More
than 240 outlets as of Dec 31, 2014 |
|
Total
assets: |
HKD
795.9 billion (JPY 12,164.7 billion) as of Dec 31, 2014 |
|
Capital
adequacy ratio: |
16.7%
as of Dec 31, 2014 |
|
Listing: |
The
Stock Exchange of Hong Kong |
|
Ratings: |
S&P:
A (long term) / Moody’s: A2 (long term) |
