HSBC Defeats Proposal Regarding Asian Business Spin-Off At Shareholder Meeting: Report

HSBC Holdings PLC HSBC reportedly defeated the proposal on the potential spinoff of its Asian business into a Hong Kong-listed company in today's annual general meeting (AGM).
Investors in support of the spinoff failed to get the majority votes. HSBC's largest shareholder, Ping An Insurance (Group) Co. of China Ltd PNGAY, supported the spinoff, reported CNBC.
Activist investor Ken Lui, leading a group of investors, discussed resolutions 17 and 18 at the AGM, comprising spinoff and fixed dividend payment proposals. In March, supported by its investor advisory firms ISS and Glass Lewis, HSBC advised the shareholders to reject these resolutions.
The report quoted Mark Tucker, Chairman of HSBC, saying, "The indicative results of all votes today are fully in line with the board's recommendations. Based on these indicative results, resolutions one to 15 have passed and resolutions 16, 17 and 18, which were requisitioned by shareholders, have failed."
The votes will be reviewed, and the final results will be released today.
Last month, HSBC said its existing strategy delivers improved results and separating the Asia-Pacific business will lead to shareholders' value loss and dividends reduction.
This week, HSBC reported a threefold increase in Q1 2023 profits led by strong net interest income and declared a quarterly dividend for the first time since 2019.
Profit before tax rose in Q1 significantly to $12.9 billion for Q1 from $4.1 billion a year earlier, with an impairment charge reversal of $2.1 billion related to the planned sale of its French operation and a provisional gain of $1.5 billion from SVB UK acquisition.
Price Action: HSBC shares are trading higher by 1.67% at $37.66 premarket on last check Friday.

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