On January 28, Industrial and Commercial Bank of China (ICBC)
completed its acquisition of Seng Heng Bank (SHB) in Macao which
will see ICBC pay 4.68 billion patacas (590 million U.S. dollars)
to buy a 79.93-percent stake in SHB, according to a joint press
release from the two banks.
"The purchase of SHB shares constitutes an important strategic
move for ICBC ... which helps elevate the bank to the leading
position in Hong Kong-Macau-Zhuhai economic zone as well as in the
regional and international banking arena," said Jiang Jianqing,
ICBC Chairman, at the closing ceremony of the acquisition.
Early on August 2007, ICBC has entered a sales and purchase
agreement with STDM (Socideade de Turismo e Diversoes de Macao),
SHB's holding company, and Vice Chairman of SHB Patrick Huen
Founded in 1972, Seng Heng Bank is Macao's third largest
commercial bank in terms of total assets. Statistics showed that by
the end of 2006, the Macao lender's assets totaled 25.39 billion
patacas (3.17 billion U.S. dollars).
"This is the first time for a Macao bank to be merged by a
transnational one ever since the handover, which demonstrated the
internationalization of Macao's financial industry as well as being
a platform for companies from the Chinese mainland seeking overseas
investment," noted Stanley Ho, Managing Director of STDM.
The acquisition of SHB was just part of ICBC's effort to make
its first foray into the international financial market. Last year,
ICBC purchased 20 percent equities in South African Standard Bank
Group at the cost of 5.46 billion U.S. dollars and announced the
establishment of subsidiaries in Moscow, Jakarta and Indonesia.
(Xinhua News Agency January 29, 2008)
