BOC Hong Kong seeks buyers for its Nanyang Commercial Bank for $8.8 billion
BOC Hong Kong, which is controlled by Bank of China, has confirmed it is seeking buyers for its Nanyang Commercial Bank unit for HKD 68bn ($8.8bn), as part of its strategy to focus more on business in Southeast Asia. A potential suitor or its controlling shareholder must be a financial institution with Chinese government ownership of more than 50%, with bidding expected to close on 25th August. Nanyang Commercial had its rating cut by Moody's a few months ago due to concern over rising bad-loan risks from its rapid mainland expansion.
Bank of China and BOCHK have received regulatory approval from the Ministry of Finance for the disposal of 100 per cent of Nanyang Commercial Bank. Photo: Reuters