HSBC pushes back on Ping An’s claims on spin-off of Asian business
- Spin-off of Asian arm recommended by Ping An would result in ‘material loss of value’ for investors, according to bank
- Structural reforms proposed by Ping An would ‘significantly dilute’ HSBC’s international business model, London-based lender says
Structural reforms suggested by its biggest shareholder, including a minority listing of HSBC’s Asia-Pacific arm in Hong Kong, would “significantly dilute the international business model” that underlies the bank’s strategy, the London-based lender said.
“This would result in a material erosion of earnings, returns, dividends and shareholder value, and a disruption to our unique global customer service proposition,” HSBC said in a statement.
“Accordingly, HSBC cannot support or recommend to its shareholders the structural options that have been proposed or otherwise considered.”
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HSBC’s break-up dilemma: why bank’s largest shareholder is pushing for change
The response by HSBC, issued during the late-evening hours in Hong Kong on Wednesday, is the latest escalation in a continuing dispute with its biggest shareholder over the future of its Asian operations. HSBC generates the bulk of its pre-tax profit in Asia.
