Four bidders have been shortlisted for the sale of Bank of China (BoC)-owned Nanyang Commercial Bank for around $6.8bn.
New China Life Insurance, China Cinda Asset Management and unlisted Yue Xiu Group are among the bidders.
According to Reuters, China Taiping Insurance Holdings has also qualified as a bidder.
The bank has 42 branches across Hong Kong and primarily deals with corporate customers, such as trading companies.
BoC had announced its decision about the sale on May 21, saying it was interested in acquiring banking operations and assets in Southeast Asia from its parent.
With a book value of about $4.5bn, the bank is being considered to be sold for 1.5 times price-to-book (P/B).
The parent bank said that it was looking for Chinese bidders to benefit more from cross-border business ties.
According to Bloomberg, BoC did not want the government to think that they were selling the bank for an amount lesser than its worth to foreign buyers.
In a joint statement, both Bank of China and BoC HK had said that the sale was aimed at ensuring a better allocation of the group’s resources.
As per its annual report, Nanyang had consolidated assets worth HK$303.9bn ($39.1bn) at the end of 2014.
Apart from its presence in Hong Kong, it had 14 branches in mainland China.
Image: Nanyang Commercial Bank has 2 branches across Hong Kong. Photo: courtesy of Juntung~commonswiki.