Societe Generale to sell Asian financial unit
Standard Chartered PLC, HSBC PLC and DBS Group Holdings Ltd. had submitted first round bids for Societe Generale's Asian private bank, said a Reuters report. The deal was priced USD600 million, according to sources involved in the sale. SocGen is the second largest bank by market capitalization in France.
SocGen would sell its Asian unit as a part of restructuring plan to reduce company spending and increase profits, said a previous report by Reuters. According to sources, SocGen's strong 15-year foothold in the Asian markets had made it an attractive prospect for acquisition.
At least one US financial company along with Credit Suisse were among 10 firms that had placed preliminary offers for the unit, said sources who were familiar with the talks and spoke in condition of anonymity. SocGen's Asian unit manages around USD13 billion worth of assets, the sources added.
SocGen would be the third major global financial firm who would sell its Asian wealth arm. Reuters said the proposed sale of SocGen's Asian unit would follow the exit moves done by Bank of America Corp and ING Groep in the last five years.