Beijing. 29 August, 2007-Industrial and Commercial Bank of China Limited (“ICBC”) today announced that it has entered into an agreement to acquire a 79.9333% interest in Seng Heng Bank Limited (“SHB”) for MOP 4,683 million from SHB’s shareholders.   

SHB is the third largest bank by total assets and the largest locally owned, independent bank in Macau.  Benefiting from Macau's strong economic growth, SHB has continued to increase its asset base and enhance its operating efficiency in recent years.  SHB has been awarded the “Best Bank in Macau” by The Banker magazine from 2001 to 2006 and Global Finance magazine from 2004 to 2007.  SHB offers a wide range of retail and corporate banking products and services through nine branches and 47 automated teller machine terminals in Macau. As at 31 December 2006, SHB has a total assets of MOP 25,387 million, total deposits of MOP 22,587 million and total loans of MOP 9,733 million. 

ICBC currently has 16,807 domestic branches, 98 overseas branches and representative offices, as well as 1,326 correspondent banks around the world.  The acquisition of SHB immediately gives ICBC a leading market position and greater scale in Macau banking sector, as well as access to SHB's high quality customer base, thereby allowing ICBC to benefit from Macau's rapidly developing economy. 

An ICBC spokesperson commented that, post the acquisition of SHB, ICBC will further enhance SHB's corporate governance, internal control and risk management, and ensure that its business operations are conducted strictly in compliance with the relevant PRC and Macau laws and regulations, in order for SHB to become an outstanding bank in Macau, thereby contributing to the economic development and transition of Macau. 

Completion of the transaction is subject to approval by the shareholders of ICBC at a general meeting, China Banking Regulatory Commission and the Monetary Authority of Macau.