Computershare Limited, the world's largest share registry and a leading technology provider for the global securities industry, and Hong Kong Exchanges and Clearing Limited (HKEx), the holding company of the Hong Kong stock and derivatives exchanges and their associated clearing houses, have agreed to merge their Hong Kong share registration (transfer agency) businesses, Central Registration Hong Kong Limited and Hong Kong Registrars Limited. [The transaction is not such as to constitute a notifiable transaction for HKEx under the Listing Rules of the Stock Exchange of Hong Kong.]
The merged businesses, to be grouped under an entity called Computershare Hong Kong Investor Services Limited (CHIS), will hold a major position in the market for share registration services in Hong Kong. Its clients will include 22 out of the 33 constituent companies in the Hang Seng Index and all 27 Mainland H-share companies in the Hang Seng China Enterprise Index.
After the merger and an associated sale of shares in the merged entity by Computershare to HKEx, CHIS will be 76 per cent owned by Computershare and 24 per cent by HKEx. The merger and sale and the integration of operations are scheduled for completion within the next few weeks.
For the three years following the merger, HKEx will have an option to acquire a further six per cent of CHIS from Computershare, which would raise its holding in the merged company to 30 per cent.
Computershare will nominate three members and HKEx will nominate two members to the board of CHIS.
HKEx's conversion agency business, which handles inter alia the conversion of Tracker Funds units, will be transferred to a new subsidiary within HKEx that is called HK Conversion Agency Services.
Chris Morris, Computershare President and CEO, said he was excited about building Computershare's business in Hong Kong and its relationship with HKEx. "HKEx's achievements since its demutualisation and listing are impressive. We believe that it is the ideal partner in this exciting market.
"Like our other businesses around the world, CHIS will use our best of breed SCRIP share registration system and other registry technology tools, and have access to our global pool of shareholder record-keeping and related expertise. When these assets are combined with HKEx's market knowledge and resources, it is clear that Hong Kong issuers and investors can only benefit from the value brought to CHIS by its shareholders," Mr Morris said.
"Following the merger, CHIS will enjoy technology advantages and economies of scale. These will lead to better services for its customers as well as HKEx and Computershare," Kwong Ki-chi, HKEx Chief Executive, said. "The merger will not only enable HKEx to streamline its operations and achieve cost savings in its core businesses but also allow HKEx to retain a significant investment in a stronger and better registration business through its share holding in CHIS.
"The combined strengths of HKEx and Computershare will also help CHIS to consolidate its industry leadership and prepare for the scripless stock market of the future," Mr Kwong said.
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About Computershare
Computershare Ltd. www.computershare.com is a leading financial services and technology provider for the global securities industry, providing services and solutions to listed companies, investors, employees, exchanges and other financial institutions. It is the largest and only global share registry (or transfer agent), managing more than 68 million shareholder accounts for over 7,500 corporations in nine countries on five continents, and it provides sophisticated trading technology to financial markets in each major time zone. Founded in Australia in 1979 and headquartered in Melbourne, Computershare employs more than 5,100 people worldwide and has a market capitalization of A$1.5 billion [HK$6 billion].
About HKEx
HKEx is the publicly listed holding company of the Hong Kong stock and derivatives exchanges and their related clearing houses. HKEx provides a comprehensive range of pre- and post-trade investment services as well as market information services. HKEx's stock exchange is the second largest in Asia and the tenth largest stock exchange in the world. For more information, please visit HKEx's website at www.hkex.com.hk.