Wing Lung hints at possible CCB acquisition

Aug. 18, 2006 (China Knowledge) – Wing Lung Bank Ltd., a Hong Kong-based bank, said Wednesday that it would welcome any potential merger or acquisition with “a very open mind”, opening up room for new speculations about whether or not the bank was in any talks with China Construction Bank Corp. (CCB) on a possible stake sale.

Hong Kong paper The Standard quoted Chairman Patrick Wu Po-kong as saying that it would be open about any possible deal.

At the beginning of this month, the Chinese-language newspaper Oriental Daily reported that Wing Lung Bank was in discussions with CCB, which was looking to buy a stake in an overseas bank to expand its international presence.

Shares of the company had soared by about HK$8 to close at HK$75.31 the day the report broke and Wing Lung subsequently issued a notice to the Hong Kong Stock Exchange saying: “There are no negotiations or agreements relating to intended acquisitions.”

Meanwhile, Wing Lung’s stock price rose again Wednesday following the announcement of a 66% increase in its net profit for the first half of the year to HK$880 million from the HK$530.4 million reported in the corresponding period of the previous year.

Earnings per share were up at HK$3.79 from HK$2.28 previously and the bank declared an interim dividend of 80 H.K cents per share.

Wing Lung’s stock reached a 52-week high Wednesday to hit HK$77.20 following the improved results.


Copyright © 2006 www.chinaknowledge.com