Hong Kong's Bank of East Asia proposes US$372m share buyback

[HONG KONG] Hong Kong's Bank of East Asia said on Friday it intends to buy back 8.43 per cent of its total issued shares worth US$372.65 million owned by hedge fund Elliot Investment Management's affiliated entities.

The share buyback which will be settled using the bank's internal resources, will take place in an off-market transaction at a maximum of HK$11.78 (S$2.05) per share, a 7.2 per cent discount to its last close on Friday.

The share buyback would result in a 6 per cent hike in the consolidated net asset value per share attributable to its shareholders, the Hong Kong-based lender said in a statement.

"This reinforces and builds upon the series of actions our management team has taken over the last few years to strengthen operations, generate value creation opportunities, and further position the bank for growth and long-term success," Adrian Li and Brian Li, co-chief executives for the bank said. REUTERS