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.
Source : CAJ News Agency