05:27 AM EDT, 10/09/2025 (MT Newswires) -- (Updates with stock price movement in the headline and the second paragraph.)

HSBC ( HSBC ) said Thursday that the company and its subsidiary, The Hong Kong and Shanghai Banking Corp, have proposed to take over and privatize Hang Seng Bank in a deal valuing the company at 290 billion Hong Kong dollars ($37.27 billion).

Shares of HSBC ( HSBC ) were down 5.9% in recent premarket activity.

If the proposed scheme of arrangement is approved, HSBC ( HSBC ) would acquire all remaining shares of Hang Seng held by minority shareholders and Hang Seng shares would be delisted from the Hong Kong Stock Exchange.

The proposal would offer Hang Seng shareholders HK$155 for each share, a 33% premium over the 30-day average closing price of HK$116.5 per share.

"This offer is final and will not be increased further," HSBC ( HSBC ) said.

HSBC ( HSBC ) also said the proposed acquisition is in line with its priority to grow its business in Hong Kong, one of its home markets.

The deal is expected to be funded with HSBC's ( HSBC ) own financial resources, the company said, adding that the investment will be accretive to earnings per ordinary share.