HK’s Bank of Jinzhou to receive 3.15 billion yuan takeover offer from Liaoning Financial

HONG-Kong-based Bank of Jinzhou said on Friday that Liaoning Financial Holding would make an offer to buy all domestic shares in the bank for an aggregate consideration of 3.15 billion yuan (S$591 million).

Liaoning Financial, which is owned by the finance authority of the Chinese province of Liaoning, will offer 1.25 yuan per domestic share, the bank said in a filing with Hong Kong Stock Exchange.

The bank added Liaoning will also offer to acquire its H-shares for HK$1.38 per H-share, valuing it at aggregate of HK$4.85 billion (S$832 million).

H-shares are shares of Chinese mainland companies listed on the Hong Kong Stock Exchange or other foreign exchanges. They are denominated in Hong Kong US dollars and traded similarly to other equities on the Hong Kong exchange.

Liaoning Financial has appointed China International Capital Corporation Hong Kong Securities as its financial adviser for the offer, the filing said.

Bank of Jinzhou will apply to delist its H-shares from the Hong Kong exchange after the offer becomes unconditional, the company added. REUTERS