The privatization of Hang Seng Bank in a sale to its parent, global-banking titan HSBC Holdings, was approved by both Hang Seng Bank’s court meeting and general meeting on Thursday.

Hang Seng Bank’s last trading day will be Jan 14, and it will be delisted on Jan 27.

At the court meeting, 85.75 percent of the Hang Seng shareholders’ voting rights in attendance and voting in person approved the privatization proposal. In addition, 97.3 percent of votes cast by Hang Seng Bank shareholders approved the special resolution regarding the privatization proposal at the general meeting.

During the general meeting, shareholders expressed diverse opinions over the price attractiveness of the privatization proposal, but they all said that they will vote for the deal to maximize profits. Some shareholders said they will consider buying other high-dividend bank stocks after cashing out.

HSBC Holdings on Oct 9 submitted the privatization of Hang Seng Bank by offering HK$155 ($19.89) per share, valuing the deal at approximately HK$290 billion, a 30 percent premium over the bank's closing price of HK$119 on Oct 8.

ALSO READ: HSBC’s Elhedery ‘to kick off 2026 with extended Hong Kong stint’

This valuation implies a price-to-book ratio of a multiple of 1.8 based on Hang Seng Bank’s 2025 first-half financial results, considerably exceeding the average of a multiple of 0.4 of other commercial banks that are based in Hong Kong and are primary-listed in Hong Kong.

With HSBC already controlling about 63 percent of Hang Seng Bank’s outstanding shares, the proposed privatization will translate into a cash payment of about HK$106 billion by HSBC Holdings to acquire the remaining ownership interest.

The privatization aims to strengthen the complementary strengths of HSBC and Hang Seng Bank so that both can better serve their customers and the community, thereby creating greater value for shareholders, Hongkong and Shanghai Banking Corp Chairman Peter Wong Tung-shun said in a commentary article posted in a local newspaper on Thursday.

The chairman reiterated that the privatization proposal reflects not only HSBC’s confidence in Hang Seng Bank but also confidence in Hong Kong's continued role as an international financial center and a vital bridge connecting the Chinese mainland and the world.

READ MORE: HSBC predicts Hang Seng Index to reach 31,000 by end of 2026

Wong said that the closer collaboration between HSBC and Hang Seng Bank will help both parties respond more effectively to market changes and meet the needs of existing and new customers in a timely manner, adding that HSBC is committed to preserving Hang Seng's independent brand, corporate governance, customer base, and independent banking license, while increasing investment in areas such as talent to continuously enhance Hang Seng's unique advantages.

This transaction represents one of Hong Kong’s most significant banking sector restructurings in recent years, concluding Hang Seng Bank’s status as a listed company in Hong Kong since 1972.

Hang Seng Bank’s share price on Thursday was largely flat at HK$153.9 per share, while HSBC Holdings slipped 2.28 percent to finish at HK$124.3.