Bank of East Asia says had no talks to sell HK, China businesses

The Bank of East Asia

02/06/2020 06:16

HONG KONG, June 2 (Reuters) - Hong Kong-based Bank of East
Asia Ltd (BEA)  0023.HK , which is conducting a review of its
portfolios and assets, said on Tuesday said it has had no
"external discussions" to sell its Hong Kong or China banking
business.
    The bank's statement to the stock exchange came in response
to a Financial Times report https://www.ft.com/content/6536e865-3e9c-490d-be2f-bd83a82e6ff3
 that said BEA was in early discussions with financial and
strategic investors about the sale of its Hong Kong and China
banking businesses.
    The bank said in March it had agreed to carry out a review
of its businesses, pausing four-year-old legal proceedings
demanding change at the lender brought by activist investor
Elliott Management.  urn:newsml:reuters.com:*:nL4N2AX073
    BEA, which has hired Goldman Sachs  GS.N  to assist with the
business review, last month extended the deadline for giving an
update to shareholders by three months to Sept. 30.
    "The bank would like to clarify that it has had no external
discussions regarding the disposal of either the Hong Kong or
mainland China banking businesses, and that no decisions have
been made with respect to any strategic alternatives for the
bank's businesses and assets under the comprehensive strategic
review," it said in its filing on Tuesday.
    Elliott has a near 8% stake in BEA and previously urged the
bank - whose main markets are Hong Kong and mainland China - to
explore putting itself up for sale in an open letter to
shareholders, in which it also said the lender was poorly run.  
      

 (Reporting by Sumeet Chatterjee; editing by Richard Pullin)
 ((sumeet.chatterjee@thomsonreuters.com; +852-2847 2094;))