StanChart acquires additional 25.9% stake in securities arm

StanChart acquires additional 25.9% stake in securities arm
PTI
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First Published: Fri, Dec 12 2008. 06 00 PM IST
Updated: Fri, Dec 12 2008. 06 00 PM IST
Mumbai: Global banking major Standard Chartered (StanChart) has increased its stake holding in Standard Chartered-STCI Capital Markets to 74.9% by acquiring an additional 25.9% stake for an undisclosed amount.
StanChart had acquired a 49% stake in the former UTI Securities Ltd, from Securities Trading Corporation of India (STCI) in January this year for a consideration of $36 million.
“This strategic initiative is a reflection of our long-term commitment to the Indian market despite the current economic slowdown,” StanChart’s Regional CEO Neeraj Swaroop said.
The acquisition is in line with the original plan between both parties according to which StanChart will acquire 100% stake in the company in stages by 2010.
StanChart has secured the necessary regulatory approvals for the acquisition of the additional stake and change in the controlling stake in the brokerage, the statement said.
The lender also plans to invest an additional capital of $4.5 million in the brokerage in line with the FDI guidelines.
StanChart has nearly 90% of its operating income and profits from Asia, Africa and the Middle East, generated from its wholesale and consumer banking business.
The financial group has 1,750 branches and outlets in 70 countries and employs about 75,000 people across the globe.
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First Published: Fri, Dec 12 2008. 06 00 PM IST