Increased Investment in The Bank of East Asia, Limited(1/1)
December 5, 2012
Sumitomo Mitsui Banking Corporation
Increased Investment in The Bank of East Asia, Limited
TOKYO, December 5, 2012--- Sumitomo Mitsui Banking Corporation (SMBC, President: Takeshi Kunibe) announced today that it has agreed with The Bank of East Asia, Limited (BEA, Chairman & Chief Executive: Dr. David K. P. Li) to increase its investment in BEA, the largest independent local bank in Hong Kong, through an acquisition of about 111.57 million new shares for HKD 3,301 million.
November 2008, SMBC signed a memorandum of mutual understanding (MOMU) with BEA and, in January 2010, subscribed for new shares in BEA for about HKD 1,416 million.
, BEA has a competitive edge in retail banking,
including SMEs, and local financial expertise in mainland
The aim of this additional investment is to further strengthen the business base of SMBC in Greater China. SMBC will continue its collaborative efforts to offer higher-value-added financial services to support the business activities of its clients in this region.
Summary of Share Subscription
Subscription method : Private placement of new shares by BEA
Number of shares : 111,572,600 shares (5.27% shares of existing total issued shares)
Subscription price : HKD 29.59 per share
Schedule : To be acquired in December 2012
After the subscription, SMBCfs share will increase from 4.73% to 9.50% of total issued shares of BEA (on a fully diluted basis)
Profile of BEA
Establishment : 1918
Location of head office :
Global network : 224 outlets
Total assets : HKD 641.5 billion (JPY 6,549.6 billion) as of June 30, 2012
Capital adequacy ratio : 13.2% as of June 30, 2012
Listing : The
Stock Exchange of
Ratings : S&P: A (long term) / Moodyfs: A2 (short term)