OREANDA-NEWS. September 16, 2014. The Bank of East Asia, Limited(“BEA”) announces that it has entered into a non-binding Memorandum of Understanding (“MOU”) with Sumitomo Mitsui Banking Corporation (“SMBC”) in respect of a proposed subscription by SMBC of some 222 million new shares (“Proposed Subscription”) or approximately 9.53% of the current issued shares of BEA.

The Proposed Subscription is subject to, among other things, the entering into of legally binding definitive agreements, the terms of which are yet to be agreed between BEA and SMBC.

In addition, the entry into of the definitive agreements shall also be subject to certain regulatory approvals having been obtained.

Commenting on the MOU, Dr. David K.P. Li, Chairman & Chief Executive of BEA said, “My colleagues and I welcome SMBC’s decision to increase its investment in BEA, which will further strengthen our Bank’s core capital. We greatly value the relationship that we have shared with SMBC for over 40 years, and we look forward to forging even closer ties with SMBC wherever possible.”

BEA’s business relationship with SMBC dates back to the early 1970s when Hong Kong’s expanding economy fuelled a growing demand for merchant banking services.

The two banks joined forces to establish Sumitomo East Asia Limited, which specialised in offshore capital financing. Today, SMBC is one of Japan’s leading commercial banks, and a global leader in syndicated loans, project finance, and transportation finance. SMBC currently holds some 9.63% of the issued shares of BEA