SCB acquires Cazenove Asia
13 November 2008
Standard Chartered to acquire Cazenove Asia Limited Deal provides platform to build out equity capital markets and institutional brokerage business.
Standard Chartered PLC announces that its subsidiary, Standard Chartered Bank (Hong Kong) Limited, has entered into an agreement to acquire 100 per cent of Cazenove Asia Limited ("Cazenove Asia"), a leading Asian equity capital markets, corporate finance and institutional brokerage business, from JPMorgan Cazenove. The acquisition is subject to certain regulatory approvals and is expected to be completed in the first quarter of 2009.
Cazenove Asia, which is a member of the Hong Kong Stock Exchange, has offices in Hong Kong, New York, London, Singapore, Shanghai and Beijing. The acquisition will give Standard Chartered a strong equity markets platform to offer clients financing, distribution, equity research and enhanced advisory capabilities in key markets.
Mike Rees, CEO Wholesale Banking, Standard Chartered, said: "This transaction reflects our strength and ability to take advantage of market opportunities in the current environment. It highlights our confidence in Asia where, despite moderation, we expect markets to grow faster than in the West. Cazenove Asia has a strong management team and the business is a great cultural and geographic fit for us.
"Acquiring Cazenove's equity financing and execution abilities is a further step in building out our Equity Capital Markets business following the investment in UTI Securities in India and the establishment of Standard Chartered Securities in Korea. It is part of our strategy to add new capabilities to deepen client relationships," Mike added.
David Mayhew, chairman of JP Morgan Cazenove, said: "Cazenove Asia has achieved great success over time. We believe this next stage will give the business and the people within it significant opportunities to continue that growth as part of Standard Chartered."
Cazenove Asia's corporate finance team has a dedicated capital markets operation, leading and participating in equity and equity-linked transactions and also M&As, on behalf of Asian issuers. It provides corporate broking and financial advice using its sector specialists. Since 1997, Cazenove Asia has been involved in 218 transactions valued at over US$98 billion on behalf of clients in the region. In 2007, it won the FinanceAsia award for the Best Mid Cap IPO. Cazenove Asia has a team of 30 analysts based in Hong Kong and Singapore, producing high quality, independent fundamental analysis on more than 250 Asian listed companies. There is a dedicated distribution team of 24 sales and sales traders based in Hong Kong, Singapore, London and New York, who service more than 700 institutional clients worldwide.
As at 31 December 2007, the gross assets of Cazenove Asia were approximately US$ 159 million.
For more information please contact:
Lauren Callie - Head of Corporate Affairs, South Africa
Tel: +27 (0)82 894 5581
Note to editorsStandard Chartered - leading the way in Asia, Africa and the Middle East
Standard Chartered PLC, listed on both the London Stock Exchange and the Hong Kong Stock Exchange, ranks among the top 25 companies in the FTSE-100 by market capitalisation. The London-headquartered group has operated for over 150 years in some of the world's most dynamic markets, leading the way in Asia, Africa and the Middle East. Its income and the number of employees have more than doubled over the last five years primarily as a result of organic growth and supplemented by acquisitions.
Standard Chartered aspires to be the best international bank for its customers across its markets. The Bank derives more than 90 per cent of its operating income and profits from Asia, Africa and the Middle East, generated from its Wholesale and Consumer Banking businesses. The Group has around 1,750 branches and outlets located in over 70 countries. The extraordinary growth of its markets and businesses creates exciting and challenging international career opportunities. Leading by example to be the right partner for its stakeholders, the Group is committed to building a sustainable business over the long term and is trusted worldwide for upholding high standards of corporate governance, social responsibility, environmental protection and employee diversity. It employs 75,000 people, nearly half of whom are women. The Group's employees are of 115 nationalities, of which 60 are represented among senior management.
For more information, please visit: www.sc.com.
Standard Chartered to acquire Cazenove Asia Limited