Societe Generale sells private banking activities in Asia to DBS
Societe Generale has agreed to sell its private banking activities in Asia operated in Singapore and Hong Kong, representing a total of USD12.6bn of assets under management as of 31 December 2013, to DBS.
The transaction will be structured as a business transfer. At completion, Societe Generale group will receive a cash consideration of USD220m for the franchise (subject to adjustment based on the net asset value and assets under management at completion) and will free up around USD200m of equity.
Further to the transaction, Societe Generale has entered into a memorandum of understanding with DBS to develop a commercial partnership combining the strengths of the two franchises for the benefit of their respective clients. The partnership will give Societe Generale’s clients access to DBS’ Private banking offering in Asia. In addition DBS’ clients will have access to Societe Generale Private Banking’s offering in Europe as well as to Corporate & Investment Banking solutions.
The transaction is subject to approvals from the relevant authorities and is expected to be completed in Q4 2014. It is expected to have a positive impact on the group net income and on the Basel 3 Common Equity Tier 1 ratio.
Societe Generale Private Banking will be in a position to free up investment capacities to accelerate its development in its core markets and to further strengthen the services offered to its clients in Europe, Latin America, the Middle East and Africa.
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