Bank of East Asia (BEA) has agreed to offload consumer finance businesses in China and Hong Kong to China Financial Services Holdings (CFSH) and its subsidiary QL Finance Company for HKD1.08bn ($138.3m).

Under the arrangement, Hong Kong-based BEA will sell CFSH its equity in Shenzhen Credit Gain Finance Company, Chongqing Liangjiang New Area Credit Gain Finance Company- both micro-finance loan firms- as well as Chongqing Dongrong Business Consultancy Company. The deals, subject to regulatory nod, will have a combined consideration of HKD644.77m.

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BEA Credit Gain’s Hong Kong loan portfolio will be sold to QL Finance for HKD414.18m.

“The Directors (including Independent Non-executive Directors) believe that the terms and conditions of the Agreements are fair and reasonable and the Disposals would be in the interests of the shareholders of the Bank as a whole,” BEA said in a statement.