BANK of America plans to sell its licensed deposit-taking company (DTC), SPC Credit, so it can focus on its Hong Kong retail operations through Bank of America (Asia).
James Hulihan, group executive vice-president and head of the bank's retail banking in Asia, said yesterday the bank would be notifying potential suitors that SPC - 'one of the most solid finance companies in Hong Kong' - was for sale.
SPC had assets of $4.95 billion last year, the sixth largest among the 135 licensed DTCs in the territory. Taxed profits were the third largest at $185 million.
Mr Hulihan said Merrill Lynch would represent the bank in the sale, and SPC would be on sale for between 30 and 45 days.
'We think it's better for Bank of America to concentrate its efforts through one company, and that's actually what we're doing,' he said.
'If someone doesn't step in [to buy SPC], then we will keep SPC.' Mr Hulihan dismissed comparisons to Chase Manhattan's abortive attempt to unload its 54 per cent stake in Manhattan Card, which was on the market for almost two months before the bank decided to keep the stake.
'They're really different situations, but we might have a little to worry about,' he said. 'But, basically, we're talking about a different institution.' Asked where the buying interest could come from, he said: 'You're asking me to guess who's going to knock on my door in a couple of days - I don't know.' Mr Hulihan said SPC was 'a well-run, highly profitable business'.