Hang Seng Bank has completed a RMB800 million (approximately US$117 million) deal that makes it the single largest shareholder of Yantai City Commercial Bank (Yantai Bank) in mainland China.
Executed by way of a share subscription, the transaction gives Hang Seng a 20% stake in the enlarged share capital of Yantai Bank. Hang Seng will have the right to nominate Directors and make personnel recommendations for various senior management positions at the Mainland bank. Hang Seng will also provide technical support in various areas including corporate governance, risk management and personal financial services for Yantai Bank through the secondment of executives, training and job attachments.
With this latest deal, Hang Seng’s total investment on the Mainland is now about RMB7.4 billion, including the capital injected into its wholly owned subsidiary, Hang Seng Bank (China) Limited, in May 2007.
D.C.