Bloomberg 07 Aug. 2013
Yue Xiu Group, a trading arm of China’s Guangzhou city government, is considering a bid for Hong Kong family-run lender Chong Hing Bank Ltd., according to a person familiar with the matter.
While talks are at an early stage, Yue Xiu is arranging financing for an acquisition, the person said without giving the size of the stake, asking not to be identified because the discussions are confidential. The founding Liu family had about 60 percent at the end of December, according to Chong Hing’s annual report. That’s valued at about HK$5.86 billion ($756 million) today, data compiled by Bloomberg show.
Chong Hing Chief Executive Officer Lau Wai-man said in March that the lender was open to proposals from prospective buyers for all or part of the bank. Takeover speculation has mounted since November, when Lau became the first CEO from outside the Liu family. The shares rallied 38 percent this year.