China Resources Group is believed to be among the contenders for Nanyang Commercial Bank, which is being offloaded by BOC Hong Kong (Holdings) Ltd. (BOCHK, 02388.HK).
The state-backed conglomerate has expressed interest in the Hong Kong lender, and could put in a binding offer by next month’s deadline, according to Bloomberg.
BOCHK has put Nanyang Bank on the block at the Beijing Financial Assets Exchange, aiming to sell the subsidiary for a minimum of HK$68 billion (US$8.8 billion).
The Hong Kong Economic Journal quoted Jim Antos, banking research head at Mizuho Securities Asia, as saying that China Resources may take political factors into consideration in weighing a bid for Nanyang.
Given the precedence of Yuexie Group’s takeover of Chong Hing Bank (01111.HK), it is likely that non-banking groups will join the bid for Nanyang Bank, he said.
China Cinda Group is another entity that is expected to be a bidder for the Hong Kong lender.
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