-Shenyang’s local government has sweetened its offer to take Shengjing Bank private, in a deal that now values the commercial lender at HK$14.07 billion ($1.81 billion), the bank said on Friday.
Shenyang Shengjing Financial Holding Investment, which is majority-owned by the Assets Supervision and Administration Commission of Shenyang Municipal Government, had previously offered to buy the remaining stake in the commercial lender it does not already own at HK$1.32 per share, valuing the company at HK$11.61 billion.
Under the terms of the new offer, shareholders in the bank would receive HK$1.60 per share.
Shenyang Shengjing, the top shareholder in the listed commercial bank which jointly holds around 37.23% stake with its affiliates, would not increase its bid any further, the bank said.
Shengjing Bank’s shares have been underperforming for a few years. Their share price slumped more than 80% till late August from their highs during early January 2022.
The stock, however, jumped about 16% on August 27, a day after the initial bid, and has gained 11.5% so far.
($1 = 7.7828 Hong Kong dollars)
(Reporting by Rishav Chatterjee in Bengaluru; Editing by Shinjini Ganguli)
