OREANDA-NEWS. December 25 2014. The Bank of East Asia, Limited(“BEA”) announces that it has entered into a Sale and Purchase Deed to acquire the mortgage loan book (the “Mortgage Acquisition”) of PrimeCredit Limited (“PrimeCredit”).

The consideration for the Mortgage Acquisition is expected to be approximately HKD6,000 million, which will be financed by internal cash resources of BEA.

Based on information provided by PrimeCredit, the book value of the mortgage loans to be purchased is approximately HKD 5,900 million as at 30th June, 2014. “We believe that this acquisition will help the Bank effectively increase its assets in Hong Kong,” said Dr. David K.P Li, Chairman & Chief Executive of BEA. “It will also provide us with an opportunity to build relationships with these newly acquired customers. We firmly believe that the acquisition is in the interests of the Bank’s shareholders as a whole.”

The consideration of the Mortgage Acquisition was determined after arm’s length negotiations between BEA and Prime Credit Holdings Limited.

Prime Credit Holdings Limited is a newly formed company incorporated in Hong Kong, which has been established for the acquisition of 100% of the shares in PrimeCredit in a related transaction that does not involve BEA.