Double whammy for Bank of East Asia shareholders

SMFG’s greater presence in the Hong Kong bank makes M&A less likely and dilutes other shareholders.

Double whammy for Bank of East Asia shareholders

Shareholders in Bank of East Asia BEA may be disappointed that Japanese megabank SMFG plans to raise its stake to 17.5% as analysts say the move makes a takeover approach even less likely and dilutes existing shareholders.

SMBC, the core lending unit of SMFG, will acquire 222 million new shares in BEA through a private placement, equivalent to 8.7% of the enlarged share capital.

“We believe the growing presence of...

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