𝓤𝓷𝓲𝓽𝓮𝓭 𝓝𝓮𝔀𝓼

HSBC has agreed to pay around 300 million euros (£260.6 million) to French authorities to settle a dividend fraud case, as the bank also said it had won shareholder backing to buy out its Hong Kong-listed business Hang Seng.

The banking giant said it was “pleased to have resolved” the issue after being investigated by French financial prosecutors.

It brings an end to the probe into its trading activity between 2014 and 2019.

Several large France-based banks have been under investigation over their alleged use of a scheme to avoid certain taxes linked to the payment of dividends.

A spokesman for HSBC said: “HSBC is pleased to have resolved this matter which relates to certain historical trading which ended in 2019.

“The settlement with the PNF (Parquet National Financier) recognises the bank’s co-operation with the investigation, as well as the corrective measures it took to address the historic issues.

“We continue to remain focused on serving our customers.”

The settlement consists of a 268 million euro (£232.8 million) fine and a tax bill of around 30 million euros (£26.1 million).

Meanwhile, HSBC announced that it had secured the approval of its shareholders over plans to take troubled lender Hang Seng private, in a deal valuing the subsidiary at 290 billion Hong Kong dollars (£27.7 billion).

The banking group said its proposals had been met with strong shareholder support, with about 86% of votes cast in favour of the move.

Hong Kong’s high court will decide whether the privatisation move can go ahead at a hearing scheduled for January 26.

HSBC said it expects Hang Seng shares to be delisted from the Hong Kong Stock Exchange on January 27 should it get the green light.

It already owns around 63% of Hang Seng and was proposing to buy out the remaining stake.

Hang Seng, which was founded in 1933, is one of the largest domestic banks in Hong Kong.

It was bought by HSBC in 1965, marking a milestone deal for the group at the time, but the subsidiary has struggled in recent years after being hit hard by Hong Kong’s property slump and seeing rising bad debts.

HSBC has said it would keep the Hang Seng brand and branch network following the deal.