[ET Net News Agency, 4 March 2020] The Bank of East Asia, Limited (00023) said that it
will be carrying out a comprehensive review of its portfolio of businesses and assets, to
ensure alignment with its strategic priorities and in order to increase shareholder value.
The review will focus on the identification of potential strategic transactions which
would enhance the value of the Bank's existing businesses and assets, as well as strategic
alternatives for potentially non-core assets.
The Bank has engaged Goldman Sachs as its financial advisor in connection with the
review. The Bank will announce an update on the status of the review by 30 June 2020 and
will report any other material updates regarding the review in a timely fashion.
"Assessing the strategic fit and value of constituent assets in the Bank's portfolio is
an important initiative to improve our capital efficiency and drive shareholder value,"
said Adrian and Brian Li, Co-Chief Executives for the Bank.
Today's announcement is made with the support of Elliott Management Corporation.
"Elliott supports the announcement today by BEA that it will undertake a comprehensive
strategic review," said Jonathan Pollock, Co-CEO and Chief Investment Officer of Elliott.
"BEA has built a strong and valuable franchise in Hong Kong and the Mainland and we
believe this step will lead to significant value creation. We look forward to continuing a
dialogue with management and the Board about opportunities to increase shareholder value,"
he added
In conjunction with this announcement, Elliott will apply for a stay (a court-ordered
"pause") of the unfair prejudice proceedings which it previously commenced against the
Bank and certain former and serving directors of the Bank. (KL)