5 August 2003

Wing Hang Bank acquires entire capital in Chekiang First Bank for HK$4.8bn

Wing Hang Bank has agreed to acquire the entire issued capital of Chekiang First Bank from Mizuho Corporate Bank for a total purchase price of HK$4.8bn (US$613m).  The proposed sale of Chekiang First Bank was first announced in May.  The agreement between Mizuho and Wing Hang Bank was signed on 31 July 2003.

The purchase price will be paid in cash and will be partly funded by an issue of subordinated debt capital to be raised by Wing Hang Bank. 

Following the completion of the transaction, the Bank will be ranked as the fourth largest listed Hong Kong-based bank by assets, with the total value of assets reaching HK$85bn (US$11bn).  Wing Hang will gain leverage from Chekiang First Bank’s liquid balance sheet and substantial assets to increase revenue opportunities in the market.

Freshfields Bruckhaus Deringer was the legal adviser to the purchaser, Wing Hang Bank. The team was led by partner Rob Ashworth, head of the firm’s corporate practice in Asia and assisted by associate Philip Gregory.  Rob Ashworth commented, “With the current trend of consolidation in Hong Kong’s banking sector, Wing Hang Bank’s acquisition is a strategically positive advancement for the bank.  We are honoured to be part of such a significant transaction”. 

The acquisition still has to undergo regulatory and shareholders approval and is anticpated to be completed on or before 30 September 2003.

Linklaters was the adviser to Mizuho Financial Group Inc. 

Notes for editors

Freshfields Bruckhaus Deringer is a leading international law firm providing a comprehensive worldwide service to national and multinational corporations, financial institutions and governments.

The firm's Hong Kong office was established in 1985. There are 18 partners and 82 lawyers, 47 of whom are locally qualified, practising both English and Hong Kong law, and advising on projects in China. The office also has lawyers qualified to advise on US law.

The Hong Kong practice is broadly based and extends throughout the region. The firm’s lawyers are experienced in corporate advisory work, structured finance, US securities, project and asset finance, restructuring and insolvency and banking work, and related fields including tax, construction, intellectual property and technology, telecoms and property. The firm also has strong litigation and arbitration, regulatory and general commercial practices.

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