investor-exits-wing-lung-via-placement

Investor exits Wing Lung via placement

The $330 million sale comes ahead of, and at a 3.8% discount to, China Merchants Bank's pending general offer for the Hong Kong bank.

By Anette Jönsson

June 15, 2008

An institutional shareholder has sold its entire stake in Wing Lung Bank two weeks after the bankÆs controlling shareholders agreed to sell their stake in the Hong Kong lender to China Merchants Bank CMB. The seller raised HK$2.57 billion $330 million from the sale, which accounted for 7.4% of the company and about 20% of the free-float.

The 17.1 million shares were offered at a fixed price of HK$150.55 a share, which represented a discount of 1.6% to ThursdayÆs closing price and at a 3.8% discount to CMBÆs offer price. Having bought a 53% stake in Wing Lung from the controlling shareholders, CMB will be making a general offering to the...

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