SATURDAY, JULY 31, 1993
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SALE OF OVERSEAS TRUST BANK
AN
THE GOVERNMENT ANNOUNCED TODAY IT HAD ENTERED INTO AGREEMENT WITH GUOCO GROUP LIMITED (GUOCO) FOR THE SALE BY THE GOVERNMENT TO GUOCO OF THE ENTIRE ISSUED SHARE CAPITAL OF OVERSEAS TRUST BANK, LIMITED (OTB).
THE AGGREGATE CONSIDERATION PAYABLE BY GUOCO UNDER THE SALE IS EQUAL TO THE ADJUSTED CONSOLIDATED NET ASSET VALUE OF THE OTB GROUP (THE "NET ASSET VALUE") PLUS A PREMIUM OF $420,000,000.
BY,
THE NET ASSET VALUE WILL BE BASED ON THE AUDITED CONSOLIDATED NET ASSET VALUE OF THE OTB GROUP AS AT JUNE 30, 1993, ADJUSTED INTER ALIA:
(I) ADDING OR SUBTRACTING ANY DIFFERENCE BETWEEN THE VALUE OF THE PROPERTIES OWNED BY OTB, ITS SUBSIDIARIES AND ASSOCIATE AS AT FIVE BUSINESS DAYS BEFORE THE COMPLETION DATE (AS APPRAISED BY INDEPENDENT PROPERTY VALUERS) AND THE NET BOOK VALUE OF THEIR PROPERTIES:
(II) THE AMOUNT OF OTB'S INNER RESERVES; AND
TO
(111) A NOTIONAL AMOUNT ON ACCOUNT OF TAX LOSSES ESTIMATED BE AVAILABLE TO THE OTB GROUP AS AT JUNE 30, 1993. SUBJECT TO THE NET ASSET VALUE HAVING BEEN DETERMINED, THE TOTAL AMOUNT OF THE CONSIDERATION WILL BE KNOWN AT COMPLETION.
THE SALE IS EXPECTED TO BE COMPLETED ON OCTOBER 15, 1993 AND COMPLETION IS CONDITIONAL UPON, INTER ALIA:
(I) GUOCO NOT HAVING SERVED A VALID TERMINATION NOTICE PRIOR TO COMPLETION AS A RESULT OF A MATERIAL. BREACH OF WARRANTIES AND UNDERTAKINGS OR A MATERIAL OMISSION OF INFORMATION, AND
(II) ALL NECESSARY REGULATORY AND GOVERNMENTAL APPROVALS BEING OBTAINED BY GUOCO,
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MONETARY STATISTICS FOR JUNE
HONG KONG DOLLAR DEPOSITS WITH AUTHORISED INSTITUTIONS DECREASED SLIGHTLY IN JUNE, ACCORDING TO STATISTICS PUBLISHED
(SATURDAY) BY THE HONG KONG MONETARY AUTHORITY.
TODAY
CONSISTENT WITH THIS, THE BROADEST HONG KONG DOLLAR MONEY SUPPLY, M3, FELL IN JUNE. ON THE OTHER HAND, HONG KONG DOLLAR LOANS AND ADVANCES INCREASED DURING THE MONTH.
/DEPOSITS