China Merchants Bank clinches Wing Lung deal
The Chinese lender agrees to pay 3.1 times book to buy control of Hong Kong-based Wing Lung, valuing the bank at $4.7 billion and triggering a general offer.
China Merchants Bank has triumphed in the three-month battle for Hong Kong-listed Wing Lung Bank and has agreed to buy the 53% controlling stake that is held by the Wu family at a price that puts the lenderÆs equity valuation at about $4.7 billion. The deal will trigger a general offer for the rest of the bank.
CMB, which is widely regarded as ChinaÆs most profitable commercial bank, will pay the equivalent of 3.1 times Wing LungÆs book value...
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