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Standard Chartered PLC — M&A Activity 2007
Aug 23, 2007
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Download source fileStandard Chartered PLC
(Stock Code: 2888)
Standard Chartered to acquire a 49 per cent stake in UTI Securities Limited
Standard Chartered announces that it has today entered into a strategic partnership (“the Transaction”) with Securities Trading Corporation of India Limited (“STCI”) to acquire a 49 per cent stake in UTI Securities Limited ("UTISEL"), a leading Indian brokerage house, for approximately USD36 million cash. As at 31 March 2007, the gross assets that are the subject of the Transaction were USD19 million and UTISEL’s total gross assets were USD38 million.
Under the agreement, STCI and Standard Chartered have provided for necessary options to raise Standard Chartered’s stake in stages to 100 per cent by 2010, subject to necessary regulatory approvals.
The acquisition, which is subject to certain conditions, including regulatory approvals, is expected to be completed by October 2007.
UTISEL is an established financial services firm in India offering broking, wealth management and investment banking services with a presence spread across 60 cities in India.
The entry into securities broking will enable Standard Chartered to broaden its product offering in Wealth Management and Private Banking within India, and the non-resident Indian (NRI) product portfolio in its footprint countries.
ENDS
For further details please contact:
Standard Chartered
Stephen Atkinson, Head of Investor Relations
Tel: (44) 20 7280 7245
Tim Baxter, Head of External Communications
Tel: (44) 20 7457 5573
Notes to Editors
Standard Chartered – leading the way in Asia, Africa and the Middle East
Standard Chartered PLC is listed on both the London Stock Exchange and the Hong Kong Stock Exchange and is consistently ranked in the top 25 among FTSE-100 companies by market capitalisation.
Standard Chartered has a history of over 150 years in banking and operates in many of the world's fastest-growing markets with an extensive global network of over 1,400 branches (including subsidiaries, associates and joint ventures) in over 50 countries in the Asia Pacific Region, South Asia, the Middle East, Africa, the United Kingdom and the Americas.
As one of the world's most international banks, Standard Chartered employs over 60,000 people, representing over 100 nationalities, worldwide. This diversity lies at the heart of the Bank's values and supports the Bank's growth as the world increasingly becomes one market.
With strong organic growth supported by strategic alliances and acquisitions and driven by its strengths in the balance and diversity of its business, products, geography and people, Standard Chartered is well positioned in the emerging trade corridors of Asia, Africa and the Middle East.
Standard Chartered derives over 90 per cent of profits from Asia, Africa and the Middle East. Serving both Consumer and Wholesale Banking customers worldwide, the Bank combines deep local knowledge with global capability to offer a wide range of innovative products and services as well as award-winning solutions.
Trusted across its network for its standard of governance and corporate responsibility, Standard Chartered takes a long term view of the consequences of its actions to ensure that the Bank builds a sustainable business through social inclusion, environmental protection and good governance.
Standard Chartered is also committed to all its stakeholders by living its values in its approach towards managing its people, exceeding expectations of its customers, making a difference in communities and working with regulators.
Securities Trading Corporation of India
Securities Trading Corporation of India, the first Primary Dealer to be set up in India, is one of the leading bond houses in the country. STCI has recently demerged its primary dealer business into a wholly owned subsidiary, STCI Primary Dealer Ltd. The primary dealer subsidiary’s core activities comprise participation, underwriting, market making and trading in Government Securities. Apart from the above, the subsidiary is an active participant in the inter-bank call money markets and Repo market and the corporate bond market. With a strong networth of Rs 9 Billion, STCI plans to actively participate in the Non-Banking Financial services segment in the country. The Company has recently started providing portfolio management services, trading in the equities market on proprietary account and distributing Mutual Fund products.
UTI Securities Limited
UTI Securities, set up in 1994, has grown from an institutional brokerage house to a full-fledged financial intermediary having nationwide presence in major cities with branches and franchisees to service a wide range of clients. The company has significant presence in institutional and retail broking, online trading (www.usectrade.com), depository services, portfolio management services, equities research, merchant banking, fixed income securities, and distribution of financial products, among others.
As at the date of this announcement, the Board of Directors of the Company comprises:
Chairman:
Mr Evan Mervyn Davies, CBE
Executive Directors:
Mr Peter Alexander Sands; Mr Gareth Richard Bullock; Mr Michael Bernard DeNoma; Mr Richard Henry Meddings; Mr Kaikhushru Shiavax Nargolwala; and
Independent Non-Executive Directors:
Mr John Wilfred Peace; Sir CK Chow; Mr James Frederick Trevor Dundas; Ms Valerie Frances Gooding, CBE; Mr Rudolph Harold Peter Markham; Ms Ruth Markland; Mr Sunil Bharti Mittal; Mr Paul David Skinner; Mr Oliver Henry James Stocken; and Lord Adair Turner.