29th Feb 2008 15:27
Standard Chartered PLC29 February 2008 STANDARD CHARTERED COMPLETES ACQUISITION OF AMERICAN EXPRESS BANK ADDING CAPABILITY AND SCALE TO THE FINANCIAL INSTITUTIONS BUSINESS AND FAST-TRACKING THE PRIVATE BANKING BUSINESS 29 February 2008 Further to the announcement made on 18 September 2007, Standard Chartered PLC("Standard Chartered" or the "Group") announces that it has received all therequired approvals and that the acquisition of American Express Bank Ltd.("AEB") from American Express Company ("AXP") (the "Transaction") completedtoday. The total cash consideration for the acquisition is equal to the netasset value of AEB at completion plus USD300 million. As at 29 February 2008,this amounts to approximately USD823 million (GBP413 million)(1). The acquisition of AEB provides Standard Chartered with an opportunity to addcapability, scale and momentum in the strategically important FinancialInstitutions and Private Bank businesses. It will further deepen StandardChartered's existing network and will provide access to a select number of newgrowth markets. As part of the Transaction Standard Chartered and AXP have entered into a putand call option under which AXP can sell and Standard Chartered can buy 100% ofAmerican Express International Deposit Company ("AEIDC") 18 months from todaywith the consideration payable to AXP being the net asset value of AEIDC at thetime of exercise of the option. The addition of the AEB business will fast-track The Standard Chartered PrivateBank growth aspirations, building immediate capability and scale in people,product and processes. AEB will enhance Standard Chartered's private bankingpresence in its key markets, leveraging on its exceptional advantage to growmarket share and build scale in existing markets like Singapore, Hong Kong,India and The Middle East. It will also add capability in trust, fiduciaryservices, margin trading, wraps, and extend geographic reach with new bookingcentres in Geneva, Monaco, Miami, New York and London. AEB will help accelerate Standard Chartered's Financial Institutions businessand significantly enhance its capabilities in this core customer segment. Thisacquisition doubles Standard Chartered's US Dollar clearing business reinforcingits position among the leading US Dollar clearing businesses and ranking thegroup sixth globally. In addition, AEB provides Standard Chartered with a directEuro and Yen clearing capability. The extended geographic reach into newcountries and deepening of Standard Chartered's presence in key existing marketswill capture more trade and investment flows. Peter Sands, Group Chief Executive, Standard Chartered PLC said: "I welcome theAmerican Express Bank employees into the Standard Chartered family. The AEBbusiness brings along an exceptional management team and I look forward to themplaying an important role in the Group." CONTACTS Investors Stephen Atkinson Ashia RazzaqHead of Investor Relations Head of InvestorRelations, Asia Pacific+44 (0)20 7280 7245 + 852 2820 [email protected]@standardchartered.com Press Tim Baxter Arijit DeHead of External Communications Head of Media Relations+ 44 (0)20 7457 5573 +44 (0)20 [email protected]@standardchartered.com BUSINESS DESCRIPTION Standard Chartered PLC, listed on both the London Stock Exchange and the HongKong Stock Exchange, ranks among the top 25 companies in the FTSE-100 by marketcapitalisation. The London-headquartered Group has operated for over 150 yearsin some of the world's most dynamic markets, leading the way in Asia, Africa andthe Middle East. Its income and the number of employees have more than doubledover the last five years primarily as a result of organic growth andsupplemented by acquisitions. Standard Chartered aspires to be the best international bank in its markets bybeing the right partner for its stakeholders and leading by example. The Groupnow employs over 70,000 people, representing some 115 nationalities, in morethan 1,600 branches and outlets located in over 70 countries. The bankgenerates more than 90 per cent of its profits from Asia, Africa and the MiddleEast, with balanced income derived from both Wholesale and Consumer Banking. The Group is committed to building a sustainable business over the long term andis trusted worldwide for upholding high standards of corporate governance,social responsibility, environmental protection and employee diversity. For moreinformation, please visit: www.standardchartered.com American Express Bank Ltd. is the international banking subsidiary of AmericanExpress Company. Founded in 1919, it provides services to financialinstitutions, high net worth individuals and affluent customers through morethan 74 locations in 47 countries. American Express International Deposit Company is based in the Cayman Islandsand issues short-term, fixed rate certificates of deposit to AEB customers. -------------------------- (1) Based on an exchange rate of USD 1.9908 : GBP £1 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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