Wing Hang:China Life,Fung Family Won't Proceed With Share Buy

Wing Hang Bank Ltd. (0302.HK) said in a statement Wednesday afternoon that China Life Insurance Co. (LFC) and the Fung family aren't proceeding with an acquisition of Wing Hang Bank shares from Bank of New York.

The statement comes after Hong Kong's Securities and Futures Commission said China Life had proposed buying 10% of Wing Hang Bank from a Bank of New York unit last year.

The Bank of New York unit, BNY International Financing Corp., holds 20.28% of Wing Hang Bank. At the same time, the Fung family, the largest shareholder in Wing Hang, had proposed buying 5% from the BNY unit, raising the family's holding in Wing Hang Bank to 28.58%, the SFC said.

The SFC ruled that since the Fung family and Bank of New York had a relationship going back 30 years, they and China Life would be acting together on the transaction. Since the combined stake would exceed 30%, the Fung family would have to make a general offer for the company, it said.