CORRECT: HSBC To Buy RBS' Indian Retail, Commercial Ops

2nd Jul 2010 10:56

("HSBC To Buy RBS' Indian Retail, Commercial Ops For $95M," at 0911 GMT, misstated the acquisition amount in the first paragraph. The correct version follows:) By Patricia Kowsmann Of DOW JONES NEWSWIRES LONDON (Dow Jones)--HSBC Holdings PLC (HBC) said Friday that it will buy the Indian retail and commercial businesses of Royal Bank of Scotland Group PLC (RBS). HSBC said it will pay a premium of up to $95 million over the tangible net asset value of the businesses when the deal closes in the first half of next year, minus an adjustment equal to 90% of any credit losses incurred on the unsecured lending portfolio in the two years after the sale closes. The businesses that RBS is selling--comprised of 31 branches and over 1,800 employees--involve portfolios with a gross asset value of $1.8 billion at March 31. The operations--which were inherited by RBS from the acquisition of a portion of Dutch bank ABN Amro Holding NV in late 2007--have been dubbed non-core by the bank after the financial crisis hit. The U.K. bank, which is 83% owned by the government, will keep an investment banking presence in India. RBS is trying to finish divestments of the many businesses this year, when it is still expecting to post a full-year loss. It has said it should turn profitable again next year. The bank has been holding talks with HSBC on the Indian assets since last year, but discussions with regulators have held off a final deal until now. -By Patricia Kowsmann, Dow Jones Newswires. Tel +44(0)207-842-9295, [email protected] (END) Dow Jones Newswires July 02, 2010 05:56 ET (09:56 GMT)