Standard Chartered nears sale of PrimeCredit consumer unit
Standard Chartered is in advanced talks to sell its Hong Kong consumer finance business to finance firm Pepper Australia in a deal that could fetch between US$500 million to US$700 million, sources said.
Standard Chartered is in advanced talks to sell its Hong Kong consumer finance business to finance firm Pepper Australia in a deal that could fetch between US$500 million to US$700 million, sources said.
Standard Chartered is sharpening its focus on global corporate banking and high-net-worth clients. High-risk, unsecured lending to Asian consumers does not fit with its current outlook.
Pepper and Hong Kong-based Chow Tai Fook Enterprises were the top two contenders for the London-based bank's PrimeCredit unit, racing ahead of other bidders after two bidding rounds, sources said.
The deal is subject to approval from the Hong Kong Monetary Authority (HKMA).
"They were picked as a preferred bidder a couple of weeks ago, and are now going through the HKMA approval process," one source said.
Standard Chartered is going through a tough period following big losses in South Korea, a slowdown in investment banking and the impact of tougher regulations. It warned in June that profit would fall for a second year this year.
