StanChart agrees terms for spin-off of private equity business

17th Dec 2018 11:16

(Sharecast News) - Standard Chartered said on Monday that it has agreed the terms for the spin-out of its private equity division and sale of the majority of its private equity investment portfolio, from which it expects to take a restructuring charge of about $160m.The majority of StanChart's private equity portfolio will be sold to funds managed by ICG Strategic Equity, which is part of Intermediate Capital Group. The portfolio is comprised of private equity investments in 35 companies across Southeast Asia, India, China, South Korea, the Middle East and Africa.The terms of the agreement are confidential and the transaction is expected to complete in the first half of 2019.Simon Cooper, CEO, Corporate, Commercial & Institutional Banking at the company, said: "The Standard Chartered Private Equity team has streamlined the group's private equity business over the past few years, in line with our stated objectives."This transaction will see the group exit the majority of its private equity exposure, and gives the SCPE team an opportunity to pursue an independent future with the backing of ICG Strategic Equity."At 1120 GMT, the shares were down 2.4% to 590.10p.