3 new suitors for Wing Hang Bank's bidding race revealed

Get to know them.

Barclays said that according to a Bloomberg report, citing people familiar with the matter, Beijing-based Anbang Insurance Group, Canada’s Bank of Nova Scotia and Singapore’s OCBC are considering bidding for Wing Hang Bank.

WHB is reportedly seeking at least 2x P/B (which puts it above HK$133 based on BVPS of HK$66.4 in 1H13), according to the article.

Here's more from Barclays:

Notably absent from the list of potential bidders are UOB, ANZ and ABC, which were previously reported to be interested in Wing Hang Bank (according to 21st Century Herald on 25 Sep 2013 and Dow Jones Newswire on 27 Sep 2013).

The Fung family and Bank of New York, which together control 45% of Wing Hang Bank, first announced that they entered into discussions with third parties to sell their stake in September.

Separately, Yue Xiu Group agreed last month to buy up to 75% of Chong Hing Bank (1111 HK, not rated) for a HK$11,644m cash consideration or 2.1x 1H13 P/B. In addition to the cash consideration from Yue Xiu, shareholders will receive HK$1,966m for the deemed property disposal of Chong Hing Bank Centre, as this building was recorded at carrying value (cost) on the balance sheet.

In total, shareholders will receive HK$40.2095/share, at 2.35x 1H13 P/B, and 1.86x if book value is adjusted to reflect the market value of Chong Hing Bank Centre. Click here for our report “Yue Xiu to buy up to 75% of Chong Hing Bank” on 27 October 2013.

Anbang Insurance Group offers a comprehensive range of insurance products including property & casualty, life, health insurance and asset management. The company is based in Beijing, operates in 31 provinces in China, has more than 10 million customers and has total assets of RMB510bn, according to its website. Its major shareholders include state-owned Shanghai Automotive Industry Corp. and China Petrochemical Corp (Sinopec). Any deal by Anbang would be subject to regulatory approval from the China Insurance Regulatory Commission, the Bloomberg article reported.

Scotiabank is Canada’s third-largest lender, based in Toronto. Former CEO Richard Waugh said in October that Scotia bank made 40 acquisition since the global financial crisis and will have a greater focus in Asia going forward. Management is open to acquisition opportunities. Scotiabank owns a minority stake in Bank of Xi’an in China and withdrew a bid for a 20% stake in Bank of Guangzhou in July.

OCBC (OCBC SP, UW, PT S$9.70) is the second-largest bank by market cap in Singapore. OCBC’s CEO, Samuel Tsien, commented earlier this month at the 3Q13 results briefing that the key to assessing potential acquisitions is if they would fit with its strategy and “mega trends”, which include growth of China/ASEAN trade and offshore RMB development.