Hong Kong's Wing Hang Bank is now subsidiary of OCBC Bank

SINGAPORE - Wing Hang Bank in Hong Kong has become a subsidiary of OCBC Bank, given that the Singapore bank now owns more than 50 per cent of Wing Hang's shares.

OCBC said in a separate statement on Tuesday that it will not increase its offer price for the remaining shares of Wing Hang.

Singapore's second largest lender is keeping its offer at HK$125 for each Wing Hang share it does not already own.

It added that it will not be allowed to increase its offer price "save in wholly exceptional circumstances".

OCBC announced in April this year that it had offered $6.23 billion in cash to buy Wing Hang Bank.

Its offer has been accepted by at least 50.4 per cent of the shareholders, including the family of Wing Hang's chairman Patrick Fung and Bank of New York Mellon Corp.

Under Hong Kong takeover rules, OCBC needs to own at least 90 per cent of Wing Hang's shares to delist the bank.

If it fails to meet that level before its offer expires on July 29, OCBC will have to keep its stake at 75 per cent or less.

OCBC shares rose eight cents to end at $9.56 on Tuesday.