Oversea-chinese Banking Corporation Limited · SGX:O39
Oversea-chinese Banking — Merger or Acquisition (April 2014)
21 slides from Oversea-chinese Banking's merger presentation, Apr 1, 2014
Slide 1: Pre-Conditional Voluntary General Offer for Wing Hang Bank, Limited
Pre-Conditional Voluntary General Offer for Wing Hang Bank, Limited 1 April 2014 Warning: The making of the Voluntary General Offer ("VGO") is subject to the satisfaction of certain pre-conditions and remains a possibility only and may or may not be made. Completion of the VGO is also subject to the
Slide 2: Transaction Overview
Transaction Overview Transaction Pre-conditional Voluntary General Offer (“VGO”) by OCBC Pearl Limited, a wholly-owned subsidiary of OCBC (“OCBC Pearl”) to acquire the entire issued share capital of Wing Hang Bank, Limited (“Wing Hang”) at an offer price of HK$125 per Wing Hang Share HK$38,428 m
Slide 3: Expected Transaction Timeline
Expected Transaction Timeline* Announcement of Pre-Conditional Voluntary General Offer to acquire the entire issued share capital of Wing Hang : 1 April 2014 Regulatory approvals(1): June 2014 Dispatch Offer Document: June 2014 Offer declared unconditional as to acceptances: June 2014 Offer closes:
Slide 4: OCBC Is A Leading Financial Services Group in Asia Pacific And Wing Hang Is An Established Mid-sized Bank Headquartered in HK
OCBC Is A Leading Financial Services Group in Asia Pacific And Wing Hang Is An Established Mid-sized Bank Headquartered in HK OCBC Wing Hang Singapore’s longest established bank, formed in 1932 from the One of Hong Kong’s longest established banks, formed in 1937 merger of three local banks, the old
Slide 5: Summary of Merged Group
Summary of Merged Group Wing Hang Pro forma contribution General Market Capitalisation (S$bn) (1) 32.6 6.1 Total branches >450 70 >520 <13.5% Branches in China 16 15 31 48.4% Branches in Hong Kong 1 42 43 97.7% Branches in Macau 0 13 13 100.0% Financial Net Loans (S$bn) 167.9 23.2 191.1 12.1% Net Lo
Slide 6: Financial Impact
Financial Impact OCBC’s capital position will remain robust post-acquisition. Prior to capital raising, our capital position post-acquisition will be: Common Equity Tier 1 CAR and Tier 1 CAR: From 14.5% to 11.0% pro forma (1) Estimated Capital Impact Total CAR: From 16.3% to 12.5% pro forma(1)
Slide 7: OCBC Corporate Strategy
OCBC Corporate Strategy Deepen Presence in Core Markets to become a leading, well-diversified Asian financial services group with a broad geographical footprint in North & South East Asia SINGAPORE MALAYSIA INDONESIA GREATER CHINA Strong market position One of top foreign banks Among Top 8 private-
Slide 8: An Immediate Enlarged Base to Deepen Presence in Greater China
An Immediate Enlarged Base to Deepen Presence in Greater China Immediately post-transaction, Wing Hang acquisition will increase OCBC’s profit before tax contribution from Greater China from 6% to 16% 2013 actual (pre-transaction) 2013 pro-forma (post-transaction) Other Asia Other Asia Pacif ic Rest
Slide 9: Wing Hang is a highly Compelling Acquisition for OCBC
Wing Hang is a highly Compelling Acquisition for OCBC Executes OCBC’s corporate strategy of deepening presence in Greater China as one of its core markets to become a leading, well-diversified Asian financial services group with a broad geographical footprint in North and South East Asia. Uniquely p
Slide 10: Executing Corporate Strategy with Extensive Integration Experience from previous Acquisitions
Executing Corporate Strategy with Extensive Integration Experience from previous Acquisitions OCBC Bank formed 2006 - 2010 Increased stake in NISP to Increased stake in NISP to through merger of 3 Acquired 22.5% NISP 72.3% 85.1% banks 2006 - 2011 Increased stake in GEH Increased stake in GEH Increas
Slide 11: Wing Hang Is Another Strategic Acquisition
Wing Hang Is Another Strategic Acquisition The acquisition strategically positions OCBC to capture new and expanding opportunities in Greater China and the Region by … 1 Capitalising on Economic Growth in Greater China and the increased Connectivity between North and South East Asia Strategically
Slide 12: Capitalising on Economic Connectivity between North and South East Asia
Capitalising on Economic Connectivity between North and South East Asia With significantly expanded presence in Greater China, well positions OCBC to capitalise on the increasing flows and connectivity between North and South East Asia Trade: Rapidly rising intra-Asia trade activity Investment a
Slide 13: Capitalising on Economic Growth in China
Capitalising on Economic Growth in China Wing Hang’s China and Macau operations give OCBC opportunities in new business areas. Enlarged China network will deepen OCBC’s presence in 4 key regions OCBC gets immediate boost in China business volume and network size Complementary network coverage in Chi
Slide 14: Capitalising on Economic Growth in Pearl River Delta Region, China
Capitalising on Economic Growth in Pearl River Delta Region, China Wing Hang’s branch network is centered around the Pearl River Delta, Hong Kong and Macau, positioning it well to capture banking opportunities in the region Guangdong province has the highest Gross Regional Product across all provi
Slide 15: Deepening and Widening OCBC's Product Capabilities with Access to Broader Funding Base
Deepening and Widening OCBC’s Product Capabilities with Access to Broader Funding Base Wing Hang provides OCBC access to a much broader funding base across Hong Kong, China and Macau to support asset growth Acquire a much broader deposit franchise in Greater China Hong Kong has become the most imp
Slide 16: Deepening and Widening OCBC's Product Capabilities with Access to Broader Funding Base
Deepening and Widening OCBC’s Product Capabilities with Access to Broader Funding Base OCBC gets the opportunity to broaden our RMB product suite and capture opportunities arising from the internationalisation of the RMB RMB Trade Share product expertise across the combined RMB as world trade curr
Slide 17: Deepening and Widening OCBC's Product Capabilities with Access to Broader Funding Base
Deepening and Widening OCBC’s Product Capabilities with Access to Broader Funding Base In addition to RMB opportunities, the acquisition broadens OCBC’s access to USD and HKD funding and product capability in other areas USD Deposit in Hong Kong Hong Kong’s well-developed USD capital markets and a
Slide 18: Enhancing the Franchise Value through 'Merger of Scope'
Enhancing the Franchise Value through ‘Merger of Scope’ Wing Hang’s platform gives OCBC access to new product capabilities and customer segments Leading Franchise : 4th largest mid-sized(1) bank in Hong Ranked #4 among mid-sized and small banks in Hong Kong based on total loans outstanding as at 3
Slide 19: Enhancing the Franchise Value through 'Merger of Scope'
Enhancing the Franchise Value through ‘Merger of Scope’ OCBC expands Wing Hang’s range of product offerings Enhanced treasury services to Wing Hang’s business customers, Non-interest Income Ratio (1H2013) improving Wing Hang’s non-interest Enhanced income ratio – OCBC’s fee 60.0% treasury services
Slide 20: OCBC's Commitment to Wing Hang
OCBC’s Commitment to Wing Hang Wing Hang’s management and staff are valuable additions to OCBC Group. We intend to reinforce the strong existing management and staff force with experts in specific areas such as wealth management and treasury. We also intend to retain all staff with no redundancies
Slide 21: Thank You
Thank You &) ocBc Bank 21
Oversea-Chinese Banking — Merger or Acquisition (April 2014) on 6ix