The Hindu Business Line : StanChart not going ahead with unit sale to UBS

Standard Chartered Plc said on Friday that its subsidiary Standard Chartered Bank will not proceed with the planned sale of its India fund management business to UBS AG.

“The sale and purchase agreement that was signed with UBS in January was conditional upon UBS securing certain regulatory approvals, which have not been granted,” said a release from the bank.

Standard Chartered will now seek a new buyer by reinitiating the tender process, the release said.

UBS had earlier agreed to buy the British bank’s mutual funds business in India for about $120 million through the purchase of 100 per cent of Standard Chartered Asset Management Co Pvt Ltd and Standard Chartered Trustee Pvt Ltd, subject to regulatory approvals, which were not granted by the RBI. The sale and purchase agreement executed in January, recently expired.

The deal by UBS was structured for acquisition of 100 per cent stake in Standard Chartered Asset Management Company and Standard Chartered Trustee Company, the manager and trustee respectively, of the group’s mutual funds in India.

The Swiss firm, however, said a strategic alliance between the two companies for fund distribution in Asia, announced at the same time as the planned acquisition, would remain unaffected.

The failure of the proposed deal would have negligible costs and would not impact UBS’ earnings.