Mumbai: Standard Chartered Plc will acquire a 100 per cent stake in Cazenove Asia Limited, a leading Asian equity capital markets, corporate finance and institutional brokerage business, from JPMorgan Cazenove.
The acquisition will be made by its subsidiary, Standard Chartered Bank (Hong Kong) Limited and StanChart expects to complete the acquisition by the first quarter of 2009, subject to regulatory approvals.
Cazenove Asia, which is a member of the Hong Kong Stock Exchange, also has offices in New York, London, Singapore, Shanghai and Beijing, Stanchart said in a press release.
Cazenove Asia has been involved in 218 deals since 1997, valued at over $98 billion. Its had gross assets of $159 million as of end-2007.
Standard Chartered said the acquisition will give it a strong equity markets platform enabling it to offer clients financing, distribution, equity research and enhanced advisory capabilities in key markets.
''This highlights our confidence in Asia where, despite the economic slowdown, we expect markets to grow faster than in the West. As we have said before, Standard Chartered is investing where we see opportunities to grow our businesses, and our strong position today means that we are able to do so. Cazenove Asia has a strong management team and the business is a great cultural and geographic fit for us,'' Jaspal Bindra, CEO Asia, Standard Chartered, said.
''The integration of Cazenove Asia will materially enhance our capability to provide integrated financing solutions to our clients. We are delighted that such a talented group of people will be joining us. This strategic move represents a further step in building out our Equity Capital Markets capability, following the investment in UTI Securities in India and the establishment of Standard Chartered Securities in Korea,'' Sean Wallace, group head of corporate finance, Standard Chartered, said.
Asia-focused Standard Chartered has more than doubled its income and the number of employees over the last five years, primarily as a result of organic growth and supplemented by acquisitions.
With around 1,750 branches and outlets located in over 70 countries, the bank derives more than 90 per cent of its operating income and profits from Asia, Africa and the Middle East.
The group employs 75,000 people, nearly half of whom are women.