NewStandard Chartered looks for buyers of Hong Kong pension business

Standard Chartered is seeking buyers for its Hong Kong pension business valued at about US$350 million in a deal that would also involve a 15-year distribution agreement with the new owner, people with knowledge of the matter told Reuters.

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Published: 1:30pm, 14 May 2015Updated: 7:45pm, 14 May 2015

The Standard Chartered branch in Hong Kong's central business district. The lender is looking for buyers of its pension business. Photo: K.Y. Cheng

Standard Chartered is seeking buyers for its Hong Kong pension business valued at about US$350 million in a deal that would also involve a 15-year distribution agreement with the new owner, people with knowledge of the matter told Reuters.

Suitors including Prudential, Principal Financial Group, Sunlife Financial, Metlife and Manulife Financial Corp are expected to take part in the auction, the people added.

Any deal would mark Standard Chartered’s second sale of a Hong Kong business in less than six months and comes as newly appointed Chief Executive Bill Winters is expected to overhaul the Asia-focused lender which has faced a prolonged slump in profits and regulatory fines.

The sale is not part of Standard Chartered’s restructuring but was aimed at offering better services to clients, two sources said.

Standard Chartered and all other companies the sources said were potential bidders declined to comment on the matter. The sources declined to be identified as the discussions are confidential.

Standard Chartered manages about HK$20 billion (US$2.6 billion) under Hong Kong’s mandatory provident fund (MPF) scheme, an industry that is dominated by bigger rival HSBC Holdings.