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Standard Chartered to spin off private equity business

Published: 16:04 17 Dec 2018 GMT

Standard Chartered
Shares fell more than 3% in afternoon trading

Standard Chartered PLC (LON:STAN) plans to spin off its private equity business and sell the majority of its private equity investment portfolio to funds managed by ICG Strategic Equity, part of Intermediate Capital Group Plc (LON:ICG).

Chief executive Bill Winters has been trying to exit the business for more than two years.

The Asia-focused bank expects the spin-out of the unit, which invests in companies across emerging markets, will result in a restructuring charge of US$160mln.

ICG’s deal to buy the bank’s private-equity assets is valued at about £790mln.

The private equity business has generated more than US$1bn in losses and restructuring costs since Winters became boss three years ago.

Winters considered selling the business to its managers in 2016 before deciding to leave the business by the end of this year. The move is part of a restructuring Winters kicked off in 2015.

"The SCPE (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."

Shares in StanChart fell 3.04% to 586p in afternoon trading. 

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