HSBC to Swallow Hang Seng Bank in $24 Billion Takeover

Thousands of Hang Seng Bank shareholders are expected to approve a plan to sell the Hong Kong lender to its parent company, HSBC, on Thursday. The deal would end Hang Seng Bank's 21-year run as a publicly traded company. HSBC's offer is HK$155 per share. This is a 30% premium over Hang Seng's stock price before the deal was announced in October. The total transaction is valued at approximately $24 billion. Analysts predict overwhelming support for the move, known as "privatization." Since the offer, Hang Seng's share price has risen, closing at HK$127.20 on Wednesday. If approved, HSBC will gain full control of Hang Seng Bank. The acquisition is one of the largest in Hong Kong's banking history.