StanChart seeking buyers for US$350m Hong Kong pension business

[HONG KONG] Standard Chartered plc is seeking buyers for its Hong Kong pension business valued at about US$350 million in a deal that would also involve a 15-year distribution agreement with the new owner, people with knowledge of the matter told Reuters.

Any deal would mark Standard Chartered's second sale of a Hong Kong business in less than six months and comes as new Chief Executive Bill Winters prepares to take charge of an institution that has seen a drop in profits and faced regulatory fines.

The sale is not part of Standard Chartered's restructuring but was aimed at offering better services to clients, two sources said.

Standard Chartered declined to comment. The sources declined to be identified as the discussions are confidential.

Standard Chartered manages about HK$20 billion (S$3.42 billion) under Hong Kong's mandatory provident fund (MPF) scheme, an industry that is dominated by bigger rival HSBC Holdings.

REUTERS