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StanChart to take $160 million charge from private equity sale

The bank is expected to take a restructuring charge of about $160 million from the sale


File photo of a woman walking down the stairs of the Standard Chartered headquarters in Hong Kong. (Photo: Reuters)

PLC (STAN.L) has agreed terms for the sale of its private equity division, ending a more than two-year effort to shed a business the bank no longer deemed central to its strategy.

will sell a majority of the private equity arm’s investment portfolio to funds managed by (ICP.L), the bank said on Monday, a deal first reported by Reuters in August.

The bank said it expected to take a restructuring charge of about $160 million from the sale, but did not disclose the terms of the deal.

Reuters previously reported that the main real estate assets in the portfolio were worth around $700 million.

The assets ICG is buying from will be directly managed by Affirma Capital, a newly-formed company consisting of the former private equity team.

The disposal follows StanChart’s decision in late 2016 to exit the principal finance business, which invests the bank’s and its clients’ money, as part of a broader strategic shift by Chief Executive Bill Winters to focus more on corporate and individual customers.

The business had been a drag on StanChart’s performance, reporting an operating loss of $217 million in 2016. From 2017, the gains and losses from the business were excluded from the bank’s financial results.

First Published: Mon, December 17 2018. 22:38 IST