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Hong Kong's Hang Seng Bank said on Monday an independent board committee found HSBC's $13.6 billion take-private offer to be fair and reasonable, and recommended its minority investors vote in favour of the proposal.
Under the offer, HSBC is proposing to purchase 36.5% of shares in Hang Seng not already owned by the company.
The deal comes as HSBC looks to boost operations strategically through acquisitions while continuing with divestments, the bank's chief executive Georges Elhedery told Reuters when the deal was announced.
Hang Seng Bank has been under pressure in recent years due to its relatively high exposure to the Hong Kong and mainland Chinese property markets.
Debt-laden property developers in Hong Kong and their creditors are set to face intensifying financial pressure as bond maturities are slated to jump by nearly 70% next year.
Founded in 1933, Hang Seng is one of Hong Kong's largest banks and a principal member of the HSBC group. It serves about 4 million customers through digital platforms and more than 250 branches across the city, according to its website. (Reporting by John Biju in Bengaluru; Editing by Muralikumar Anantharaman)





















