South Africa’s Standard Bank Group on Wednesday announced plans to sell a majority stake in its markets division to the Industrial and Commercial Bank of China for $765 million.
The London-based Global Markets business presented a chance to “release a significant amount of capital for the group from its operations outside Africa.”
“Based on the net asset value of Standard Bank Plc and other relevant operations as at the end of June 2013, the consideration for this transaction is estimated to be $765 million,” the bank said in a statement.
State backed ICBC will take a 60 percent share of the unit and Standard Bank shareholders are yet to approve.
The Johannesburg-headquartered bank said it was also granting ICBC a five-year option to acquire an additional 20 percent stake in the London-based business.
In 2007, ICBC bought a 20 percent stake in South Africa’s Standard Bank for $5.4 billion, giving it access into the African market.
David Munro Standard Bank chief for Investment banking, hailed the partnership as reflective of “direct linkages between emerging market economies” who are “increasingly important contributors to the global economy.”
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