Wing Hang may dive if bid is hindered
Under HK rules, OCBC needs 90% of shares to delist firm
SHARES of Wing Hang Bank Ltd, a Hong Kong lender being taken over by Oversea-Chinese Banking Corp, could fall as much as 40 per cent if OCBC doesn't garner enough stock to delist the company, Credit Suisse Group AG said.
Under Hong Kong rules, Singapore-based OCBC needs to own at least 90 per cent of Wing Hang's shares to delist the bank, analysts Sanjay Jain and Vineet Thogde wrote in a report yesterday. Failing to win acceptances to take it over that threshold before its offer expires on July 29 means that OCBC will have to pare its stake to 75 per cent, the analysts said.
The report came after a regulatory filing showed that billionaire Paul Singer's Elliott Capital Advisors LP had raised its stake in Wing Hang to 7.8 per cent. The fund bought 8.7 million shares on July 2 at HK$125 (S$20), according to a July 3 disclosure posted on the website of Hong Kong's Securities & Futures Commission. The price matched the amount offered by OCBC on April 1.
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