(Hong Kong) – Abbey National has surprised analysts by selling its 5.5 percent stake in Hong Kong’s Dah Sing Bank for around HK$490 million.While Abbey is known to be dumping non-core assets as part of a drive to rebuild its balance sheet, the move to exit the respected Hong Kong lender at HK$36.65 a share – a 7 percent discount to the market price – was unexpected.
“That’s fire sale stuff,” said Anna Borzi, banking analyst with HSBC Holdings in Hong Kong.
The price still represents a profit for Abbey National. It bought its stake in 1997 at HK$31.68 a share, so walks away with a gain of around HK$60 million.
Abbey recently announced it was selling its Australian corporate loan book.