| ICBC in talks to acquire Macau bank |
SHANGHAI, Aug. 25 -- THE Industrial and Commercial Bank of China Ltd, China's biggest bank by assets, is in talks to acquire Seng Heng Bank Ltd, a Macau bank controlled by gambling mogul Stanley Ho, Dow Jones Newswires reported yesterday.
ICBC is in talks to buy the Macau bank, although nothing has been finalized yet, Dow Jones reported, quoting an unnamed person it said was familiar with the deal.
The Financial Times reported yesterday that talks have been under way between the two sides for three months.
Ho owns the bank through his casino operator Sociedade de Turismo e Diversoes de Macau, which has a 12.08- percent stake in Hong Kong-listed conglomerate Shun Tak Holdings Ltd. STDM acquired the bank in 1989. It employs about 314 people in Macau, according to the bank's Website.
Seng Heng, with assets of US$3.2 billion, is Macau's second-largest locally incorporated bank after Tai Fung Bank Ltd.
ICBC's Chairman Jiang Jianqing said in a Hong Kong briefing on its first-half results on Thursday that the bank was open to the idea of overseas acquisitions as a means of lowering its foreign currency exposure.
"If there is a good target and the timing is right, we will do it," he said.
ICBC said it now has about US$7 billion in foreign currency holdings and faces the risk of foreign exchange loss in view of the rising Chinese currency.
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