Yue Xiu Group is in talks to acquire Chong Hing Bank (01111.HK), with a deal expected this week, the Hong Kong Economic Journal reported Thursday, citing Bloomberg. Yue Xiu is planning to raise US$1 billion to fund the acquisition, the report said. Based on the company’s return rate of 7.4 percent for the first half, the purchase price could be HK$38.35 per share, a price-to-book ratio of 2.24 times, it said. Yue Xiu Group has three listed companies in Hong Kong, namely, Yue Xiu Property Co. Ltd. (00123.HK), Yuexiu Transport Infrastructure Ltd. (01052.HK) and GZI Real Estate Investment Trust (00405.HK).
– Contact HKEJ at [email protected]