2nd Jan 2008 08:40
HSBC Holdings PLC02 January 2008 HSBC SELLS US WEALTH & TAX ADVISORY BUSINESS IN MANAGEMENT BUY-OUT HSBC USA Inc. has signed an agreement to sell Wealth & Tax Advisory Services USAInc. ('WTAS') to participating WTAS managing directors in a management buy-out.WTAS provides tax advisory services in the United States to high net worthindividuals including HSBC Private Bank customers. The transaction will enableWTAS to pursue a broader expansion strategy. In consideration for the sale, HSBC will receive US$5 million in cash anddeferred notes with a principal amount totalling US$60.85 million. Under theagreement, HSBC has an option to acquire 19.9 per cent of the equity of WTAS,subject to certain conditions and dilution as new managing directors join WTASover time. Chris Meares, HSBC Private Banking Chief Executive Officer, said: "We wish theWTAS management team well in taking the business forward. Our focus is ondeveloping our core private banking activities in both developing and developedmarkets using HSBC's unique distribution network." Completion of the transaction is subject to customary closing conditions. Notes to editors: 1. WTAS Wealth and Tax Advisory Services, Inc. ('WTAS') is one of the largest nationalindependent tax advisory firms (unaffiliated with an auditing institution). Itspecialises in individual and business entity tax compliance and consulting,providing a wide range of tax, valuation and financial advisory services. Thepractice consists of over 350 professionals located in 11 major citiesthroughout the United States. 2. HSBC Private Bank HSBC Private Bank is the marketing name for the private banking businessconducted by the principal private banking subsidiaries of the HSBC Groupworldwide. HSBC Private Bank, together with HSBC Guyerzeller and the privatebanking activities of HSBC Trinkaus & Burkhardt as well as the HSBC PrivateBanking entities, provides private banking and trustee services to high networth individuals and their families through 90 locations in some 37 countriesand territories in the Americas, the Asia-Pacific region, Europe and the MiddleEast. 3. HSBC USA Inc. HSBC USA Inc. is an indirectly-held, wholly owned subsidiary of HSBC NorthAmerica Holdings Inc. HSBC USA Inc. one of the nation's 10 largest bank holdingcompanies by assets and is the holding company of HSBC Bank USA, N.A. 4. HSBC Holdings plc HSBC Holdings plc serves over 125 million customers worldwide through around10,000 offices in 83 countries and territories in Europe, the Asia-Pacificregion, the Americas, the Middle East and Africa. With assets of some US$2,150billion at 30 June 2007, HSBC is one of the world's largest banking andfinancial services organisations. HSBC is marketed worldwide as 'the world'slocal bank'. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
HSBC Holdings