Advertisement
Advertisement
Standard Chartered Bank
Get more with myNEWS
A personalised news feed of stories that matter to you
Learn more
Standard Chartered wants to shore up corporate banking to better absorb a slowdown. Photo: Reuters

Standard Chartered in deal to sell Hong Kong, Shenzhen consumer units

Emerging-markets-focused lender to divest two consumer finance assets as part of shake-up to concentrate on corporate banking business

Standard Chartered is selling its Hong Kong and Shenzhen consumer finance businesses to a consortium that includes a mainland state enterprise, helping the emerging-markets-focused lender to clinch its biggest asset disposal as part of a restructuring.

In what is expected to be the first of many divestitures, Standard Chartered has agreed to dispose of the units for between US$600 million and US$700 million, people familiar with the matter said.

Standard Chartered announced the sale deal yesterday but did not disclose the value of the transaction.

The buying consortium includes China Travel Financial Holdings, US hedge fund York Capital Management Global Advisors and financial firm Pepper Australia.

The consortium will sell a portfolio of residential mortgages with a book value of about HK$5.9 billion to the Bank of East Asia on completion of the deal, Standard Chartered said.

China Travel is a state-owned enterprise operating in the travel business and was seeking to expand into the financial services sector, hoping to cross-sell products to its existing clients, one of the people familiar with the deal said, declining to be named.

Bankers expect mainland financial services firms to step up overseas acquisitions. Last week, Haitong Securities agreed to buy Portugal's Banco Espirito Santo de Investimento for €379 million (HK$3.65 billion).

Standard Chartered's shares have come under pressure because of slower growth in Asia and after being hit with costly fines by regulators in the United States for breaching Iran sanctions in 2012.

Standard Chartered, like its regional rivals, is focusing on shoring up its main corporate banking business to better absorb a slowdown in economic growth and lending in emerging markets.

Morgan Stanley is advising Standard Chartered on the sale of the Hong Kong and Shenzhen consumer finance businesses, sources have said earlier.

Pepper is a specialty mortgage lender, third-party loan servicer and an asset manager, with businesses in Britain and Australia.

This article appeared in the South China Morning Post print edition as: StanChart in deal to sell HK, Shenzhen units
Post