News Release


Additional Investment in The Bank of East Asia, Limited(1/1)

March 18, 2015

Sumitomo Mitsui Banking Corporation

 

 

Additional Investment in The Bank of East Asia, Limited

 

TOKYO, March 18, 2015 --- Sumitomo Mitsui Banking Corporation (SMBC, President & CEO: 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 by approximately HKD 6.6 billion. SMBC will nominate a relevant executive to BEA as a non-executive director and BEA will become an equity method affiliate of SMBC.

 

The aim of this additional investment is to expand the business base of SMBC in PRC and Hong Kong and enhance our ability to provide financial products and services in the region by further strengthening our relationship with BEA, one of the largest commercial banks in Hong Kong with strength in, among others, innovative, value-added banking services to retail and SME customers in PRC and Hong Kong.

 

 

Summary of Share Subscription:

Subscription method:

Private placement of new shares by BEA

Number of shares:

222,600,000 shares (9.48% shares of existing total issued shares)

Subscription price:

HKD 29.5576 per share

Schedule:

To be acquired in March 2015

After the subscription, SMBCfs shareholding in BEA will increase from 9.68% to 17.50% of total issued shares of BEA (enlarged issued share capital basis).

 

Profile of BEA:

Establishment:

1918

Location of head office:

10 Des Voeux Road Central, Hong Kong

Global network:

More than 240 outlets as of Dec 31, 2014

Total assets:

HKD 795.9 billion (JPY 12,164.7 billion) as of Dec 31, 2014

Capital adequacy ratio:

16.7% as of Dec 31, 2014

Listing:

The Stock Exchange of Hong Kong

Ratings:

S&P: A (long term) / Moodyfs: A2 (long term)

                




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