UOB buys more shares in troubled Hengfeng Bank for 1.86b yuan

Singapore

UNITED Overseas Bank (UOB) announced on Wednesday after trading hours that it is buying an additional 1.86 billion shares in troubled Chinese mid-sized lender Hengfeng Bank Co for 1.86 billion yuan (S$360.4 million) as part of a subscription agreement.

Following the transaction, which is subject to regulatory approvals, UOB will hold a total of 3.34 billion shares in Hengfeng Bank. Despite the additional shares, its stake will be reduced from 13 per cent to 3 per cent.