OCBC Versus Hedge Fund: Acquisition of Wing Hang Bank

內容大綱
A Singapore-based financial services company, the second largest lender in Southeast Asia, offered to acquire a Hong Kong bank, the eighth largest lender in the country, for a premium price per share. Three months later, a multi-billion hedge fund firm based in the United States had accumulated close to 8 per cent of the Hong Kong bank’s shares. According to Hong Kong’s securities law, the Singapore-based financial institution would have to acquire 90 per cent of the Hong Kong bank’s shares to successfully take the bank private, and there were only 25 days left for the company to meet this requirement. The hedge fund firm’s unspoken message was clear: raise your bid price to buy our shares or we will keep the company public at your expense.
學習目標
This case is suitable for undergraduate and/or graduate courses on corporate finance and corporate strategy. The learning objectives are:<ul><li>To illustrate the challenges involved in a cross-border bank acquisition. </li><li> To demonstrate the potential roadblocks shareholder activism can create in a business acquisition. </li><li>To identify the strategies to consider when entering a new market and when dealing with shareholder activism. </li><li> To learn about the competitive landscapes for the banking industry in Southeast Asia, namely Hong Kong and Singapore. </li><li>To discuss RMB internationalization and the strategic opportunities associated with it. </li></ul>
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