Oct. 25 (Bloomberg) -- Yue Xiu Group is bidding HK$11.6 billion ($1.5 billion) for a 75 percent stake in Chong Hing Bank Ltd., seeking a foothold in Hong Kong as the banking hub’s role in cross-border financing expands.
Yue Xiu, controlled by the city government of the Chinese city of Guangzhou, is offering HK$35.69 a share in cash for the stake, the bank said in a statement today.
The first acquisition of a Hong Kong lender since 2009 will give Yue Xiu a network of 53 branches, including one each in Macau and mainland China. Chong Hing, which named Lau Wai-man as the first chief executive officer from outside the founding Liu family last year, said in August it had been approached by prospective bidders.
--Nathaniel Espino. Editor: John Liu