HSBC AGREES TO ACQUIRE BANK OF BERMUDABank of Bermuda LTD • October 28th, 2003 • Functions related to depository banking, nec
(28 October 2003) HSBC Holdings plc (“HSBC”) and The Bank of Bermuda Limited (“Bank of Bermuda”) have entered into an agreement under which HSBC will acquire Bank of Bermuda, in a transaction valued at US$1.3 billion. Under the terms of the agreement shareholders of Bank of Bermuda will receive a total of US$45 per Bank of Bermuda share in cash, comprising US$40 from HSBC and BD$5 as a special dividend from Bank of Bermuda which, under existing arrangements, may be taken in US dollars. This total of US$45 per share represents a 16.3% premium over the Nasdaq average closing price for the three months to 24 October 2003. Bank of Bermuda will pay the special dividend to the shareholders of record immediately before the closing date. The cash consideration payable by HSBC will be made available from resources within the HSBC Group.
