MUFG exits Hong Kong-based Dah Sing Financial Holdings
MUFG Bank today announced that it has sold nearly all its shares (31,637,935 shares) in Dah Sing Financial Holdings Limited (Dah Sing), a Hong Kong-based financial group, with the remainder of its Dah Sing shares (319,575 shares) to be sold on the stock market in the fiscal year ending March 2023.
MUFG stated that it is currently optimizing its management resources on a global basis as part of a review of its business portfolios, an initiative of the structural reforms it is implementing as a key strategy of its Medium-term Business Plan. Against this backdrop, MUFG is conducting a review of existing strategic investments by MUFG group companies from the viewpoint of strategy, capital efficiency, etc.
As a result of this strategic review, MUFG has already disposed of MUFG Union Bank in the US, and its Thai subsidiary Krungsri has recently acquired Nomura’s security brokerage business in the country.
Dah Sing is a major financial group based in Hong Kong. MUFG Bank has had a strong relationship with them for more than twenty years since The Sanwa Bank, Limited, one of MUFG Bank’s predecessors, made an investment in Dah Sing in 2000. MUFG Bank announced the sale of a portion of its shares in Dah Sing on January 23, 2019, and thereafter has continued to carefully weigh changes in the business environment surrounding MUFG and MUFG Bank. Based on this, it has now decided to sell all of its remaining shares in Dah Sing.
While MUFG Bank’s capital and business alliance with Dah Sing will come to an end with the Share Sale, Dah Sing will remain as an important partner of MUFG Bank in Hong Kong. MUFG Bank has supported clients in Hong Kong for 70 years since the former Bank of Tokyo opened a representative office there in 1952. MUFG Bank will continue to expand financial services as a community-based bank and meet the community’s various needs
Source: MUFG press release
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