CHASE Manhattan Bank is quitting the Hong Kong credit card business in a sale of the parent bank's $2.6 billion stake in Manhattan Card.
The parent group is getting out of all consumer credit businesses outside the United States.
With 370,000 cardholders, it is the fourth largest card issuer in Hong Kong and had a market share of 16.3 per cent at the end of March this year. It took in $2.86 billion in customer payments last year.
Chase Manhattan senior vice-president Jim Brew said the bank was in talks with a number of buyers, without elaborating.
Manhattan Card was spun-off in a separate listing from Chase Manhattan in June 1993. A 20 per cent stake was taken by mainland investment company CITIC Pacific, with 26 per cent in public hands. The remaining 54 per cent is owned by Chase Manhattan. It has a market capitalisation of $4.8 billion making it Hong Kong's 56th largest listed firm.
Mr Brew said the company decided to announce the sale plans to avoid any confusion in trading caused by rumours. Shares were unchanged at $3.225.