New Shareholders Join Hong Kong Note Printing Limited

The Hong Kong Monetary Authority announced today that the Financial Secretary has entered into agreement with the three Note-issuing Banks (NIBs), namely Bank of China, The Hongkong and Shanghai Banking Corporation Limited and Standard Chartered Bank, to sell 2,550,000 shares, or 10% of the issued shares, of Hong Kong Note Printing Limited (HKNPL) to each of the three NIBs. The consideration for the sale is $30,502,232 for each of the NIBs.

HKNPL, which operates a banknote printing plant in Tai Po, was acquired by the Hong Kong Government through the Exchange Fund in April 1996 and its main line of business is the printing of Hong Kong dollar banknotes. In March this year, the China Banknote Printing and Minting Corporation (CBPMC) purchased 15% of the shares in HKNPL and became a minority shareholder of the company.

"I welcome the three NIBs becoming minority shareholders of HKNPL. Given their role and interest in the issuance of banknotes in Hong Kong, the NIBs' participation will widen and strengthen further the shareholder base of HKNPL and contribute to the future success and development of the company. I would nevertheless like to emphasise that it remains the Government's intention to retain a majority shareholding in and management control of HKNPL," said Mr Donald Tsang, the Financial Secretary.

Following the sale of shares to CBPMC and the three NIBs, the Government maintains a 55% stake in HKNPL. According to the terms of the sale, each of the three NIBs will be entitled to nominate a director for appointment to the Board of HKNPL.

"I am sure that the NIBs' participation on the Board of HKNPL will enhance the management capability of the company. It will also put the HKNPL in a stronger position to explore future business opportunities in the field of security printing," said Mr Joseph Yam, Chairman of HKNPL.



Hong Kong Monetary Authority

13 October 1997