China Merchants Bank will buy Hong Kong’s Wing Lung Bank, after beating bids from rivals including ICBC and Bank of Communications. CMB will pay HK$156.50 per share for a 53% stake in Wing Lung, valuing the bank at around $4.7 billion. Rumours of the sale have driven up Wing Lung’s share price: in a letter to shareholders on June 11, CMB’s board noted that the price paid per share represented "a premium of approximately 76.14% over the closing price of HK$88.85 per WLB Share as quoted on the Stock Exchange on 12 February 2008, being the last full trading day prior to recent news articles of the potential sale of the shares on 13 February 2008." It’s a high price to pay, and in the same letter the board of CMB announced that the bank would look to the debt markets to raise sufficient capital to finance the acquisition with an issuance of Rmb30 billion ($4.3 billion). CMB, China’s sixth-largest bank by assets, was advised by JPMorgan in the three-month bidding process. Wing Lung was advised by UBS and Credit Suisse.