Did Wing Hang pick up a bargain in Chekiang?

Last Friday, Wing Hang Bank announced the signing of a share purchase agreement to acquire Chekiang First Bank for HK$4.8 billion ($615 million) from Mizuho Corporate Bank. The acquisition is to be paid for entirely in cash, after adjusting for a dividend to be paid by Chekiang First to Mizuho. Morgan Stanley acted as financial advisor to Wing Hang and here, Matthew Ginsberg, the bank's head of FIG for Asia Pacific and Terence Keyes, an MD in the M&A group explain the rationale behind the transaction.