Hang Seng Bank shares jump 30% on parent HSBC's privatization bid, valuing it at over $37 billion

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Hang Seng Bank shares jumped 29.5% Thursday after parent HSBC announced plans to take it private, valuing the lender at more than 290 billion Hong Kong dollars (over $37 billion).

HSBC, Europe's largest lender, has asked Hang Seng Bank's board to put forward a privatization proposal to shareholders via a scheme of arrangement under Hong Kong’s Companies Ordinance.

Shares in Hang Seng Bank would be canceled in exchange for 155 Hong Kong dollars apiece, roughly 33% above Hang Seng's average share price over the past 30 days of HK$116.5. HSBC owns around 63% of Hang Seng Bank, pegging the deal value at HK$106 billion.

HSBC shares in Hong Kong fell over 5%.

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