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Permira to buy Bank of East Asia's Tricor unit for $838 mln
October 5, 2016 / 10:37 AM / a year ago

Permira to buy Bank of East Asia's Tricor unit for $838 mln

HONG KONG, Oct 5 (Reuters) - Private equity firm Permira has agreed to acquire Hong Kong-based lender Bank of East Asia Ltd’s share registry unit Tricor Holdings Ltd for HK$6.5 billion ($837.91 million), the bank said on Wednesday.

The cash generated from the transaction will improve Bank of East Asia’s capital position, and will be used for “strategic opportunities” relating to its core banking business, the lender told the stock exchange in a statement.

Tricor provides corporate services and its stable and steady cash generation is attractive to private equity firms. Permira’s bid values Tricor at about 15 times its core earnings of about $55 million last year.

Reuters reported last week Permira emerged as the preferred bidder to buy Tricor for between $750 million and $800 million, after six months of bidding that attracted the interest of top Chinese insurers, among others. ($1=7.7574 Hong Kong dollars) (Reporting by Sumeet Chatterjee; Editing by Clarence Fernandez)

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