HONG KONG / LONDON, 8 January 2026 — HSBC Holdings Plc secured decisive support from minority shareholders on Thursday for its approximately $14 billion buyout offer of Hang Seng Bank Ltd., clearing a significant hurdle in its campaign to take its long-time Hong Kong subsidiary fully private.
At combined meetings in Hong Kong, including the Hang Seng Bank Court Meeting and General Meeting held earlier on Thursday, roughly 86 % of shareholders voted in favour of HSBC’s proposal to acquire the roughly 36.5 % stake it does not already own, according to multiple sources. With the backing secured, the deal now moves to a final High Court sanction hearing scheduled for 23 January, with a planned delisting from the Hong Kong Stock Exchange by late January if approved.
Strategic Rationale For Full Ownership
HSBC’s bid will transform Hang Seng into a fully owned subsidiary, consolidating its presence in Hong Kong, a core Asian market, as part of a broader strategy to deepen its footprint in the region while simplifying its corporate structure. The acquisition is viewed as a continuation of HSBC’s pivot toward Asia as a central growth engine, even as it has divested non-core assets elsewhere.
Group Chief Executive Georges Elhedery said the strong shareholder support reflects confidence in Hang Seng’s franchise and the strategic logic of full ownership, which HSBC believes will unlock greater synergies and alignment across businesses in one of its most important markets.
Deal Terms And Market Context
Under the terms of the scheme of arrangement, HSBC offered HK$155 per share in cash for the outstanding minority shares, a premium to prevailing market prices that helped win investor support. The overall valuation of the deal is commonly cited at around US$37 billion, with the $14 billion representing the cost of buying out the approximately 36.5 % minority interest. Regulators, independent advisers and the bank’s board previously recommended that shareholders support the proposal, deeming the scheme “fair and reasonable.”
The move builds on an approach first announced in October 2025 as HSBC sought to take advantage of valuation and integration opportunities presented by Hang Seng Bank — historically one of the city’s dominant local lenders but one challenged by exposure to Hong Kong’s property market downturn and shifts in regional banking dynamics.
Next Steps And Broader Implications
With shareholder approval in place, the transaction enters its final legal stages. The High Court must now sanction the scheme before it can become effective, after which Hang Seng’s shares will be withdrawn from trading. HSBC has indicated it will finance the buyout primarily through internal resources and does not currently plan further share buybacks for a set period following completion under existing commitments.
For HSBC, full control of Hang Seng, a bank with deep roots in Hong Kong’s retail and commercial banking segments, is expected to allow for tighter strategic integration, greater capital allocation flexibility and a clearer platform for growth in the wider Asia-Pacific region. The transaction underscores HSBC’s long-term commitment to its historical home market amid shifting global banking dynamics.
