Published On: Mon, Feb 2nd, 2015

Standard confirms sell of its London operation

Standard Bank

Standard Bank

by TINSTWALO BALOYI
JOHANNESBURG – STANDARD Bank Group Limited (SBG) announced the
signing of the closing documents with Industrial and Commercial Bank of
China Limited (ICBC) to cement the completion of the disposal of its
London business effective February 1.

The transaction proceeds receivable by SBG will be finalised after a post
completion audit of Standard Bank Plc, and total gross proceeds of
approximately US$ 690 million are expected.

According to a statement, SBG has ensured that the joint business has
sufficient financial resources to support the growth inherent in its joint
business plan by making a capital injection of $ 300 million in January
2015, after receiving necessary approvals, to address losses incurred by
Standard Bank Plc in 2014, inter alia from aluminium exposures in China.

Proceeds of the transaction will be deployed in furthering the group’s
growth strategy in South Africa, and across the African continent, subject
to necessary approvals.

Ben Kruger, Chief Executive of SBG, said ICBC was a long-standing
strategic partner of SBG.

“We are excited by the unique opportunity this transaction offers to our
people and our clients,” he said.

The new business unlocks the potential and capacity of their Global
Markets business as part of China’s leading banking group, while also
recognizing the unique African focus and expertise of our investment
banking and transaction platforms, he added.

The joint venture will continue to support all trading requirements of
SBG’s existing customers with full and uninterrupted access to all
distribution channels as they partner with SBG to finance growth and
development on the African continent.

David Munro, Chief Executive, SBG Corporate and Investment Banking, said
the transaction further strengthened SBG’s powerful relationship with
ICBC.

“China and Africa have an increasingly important shared role in the future
of the global economy, and this partnership brings together ICBC’s
financial and global reach, with SBG’s deep expertise in Africa, to the
benefit of our mutual and prospective clients,” said Munro.

– CAJ News

 

 

 

 

 

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