Mumbai, Sept 2: Standard Chartered Plc is to acquire the entire issued share capital of Chase Manhattan Card Company Ltd and Chase's Hong Kong-based retail banking business for around $ 1.32 billion, even as it sold Chartered Trust, the group's UK and Channel Islands consumer finance, for 627 million pounds in cash (over $ 900 million).The total consideration for the acquisition, which includes goodwill of $ 1.02 billion would be paid in cash, StanChart said in a release here today, adding that the acquisition would be funded from cash raised by the sale of Chartered Trust and by way of placing on new ordinary shares. It sold Chartered Trust to Lloyds UDT, a subsidiary of Lloyds TSB Group, the release said. Stanchart intends to raise approximately 450 million pounds (over $ 650 million), net of expenses, by way of placing for cash of 50 million new ordinary shares at a price of 9.15 pounds per new ordinary share representing about 4.7 per cent of its current issued share capital.
However, the placing was not conditional upon completion of acquisition of Chase's Hong Kong consumer banking operations, it added. Rana Talwar, Group Chief Executive, StanChart, in a release said "This is another step forward in our strategy to become the world's leading emerging markets' bank."
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