It's a wrap: OCBC succeeds in Wing Hang Bank takeover

WHB will be delisted from HKEx.

OCBC and Wing Hang Bank (WHB) jointly announced that as at 4pm on 29 Jul 2014, being the latest time and date for acceptance of the general offer made by OCBC to the shareholders of

WHB, OCBC has acquired 97.52% of the issued share capital of WHB.

According to a research note from Maybank Kim Eng, OCBC will exercise its right under the Companies Ordinance and pursuant to Rule 2.11 of the Takeover Code for a compulsory acquisition of the remaining WHB shares.

On completion of the compulsory acquisition process, WHB will become a wholly owned subsidiary of OCBC.

WHB has applied to suspend the trading of its shares from 30 Jul 2014 until the withdrawal of listing from HKEx.

Here's more from Maybank Kim Eng:

After the acquisition, OCBC’s outlets in Hong Kong, China and Macau will increase to 43, 32 and 13.

Besides, we estimate its pre-tax profit contribution from Greater China operations will rise from 5.8% in 2013 to 14-15%.

If OCBC can increase WHB’s non-interest income contribution from 21% in 2013 to 35% by 2015, there should be revenue synergies of HKD1b.

We estimate this should limit the EPS and ROE dilution to OCBC if it seeks to finance the acquisition through equity capital during 2014-15.

As WHB will be delisted from HKEx, we drop coverage of the stock.