Sale of RBS APAC Cash Equities, ECM and M&A

RNS Number : 5729A

Royal Bank of Scotland Group PLC

02 April 2012

 



RNS

The Royal Bank of Scotland Group plc ("RBS") has agreed to sell certain businesses in Asia Pacific to CIMB Group Sdn Bhd ("CIMB"). RBS continues with leading positions in debt financing, risk management and transaction services in 11 Asia Pacific markets.

On 12 January 2012, RBS announced its decision to exit its cash equities, corporate broking, equity capital markets, and mergers and acquisitions businesses as part of changes to the bank's wholesale banking operations.

RBS today announces that it has agreed to sell to CIMB its:

-   Cash Equities businesses in Australia (excluding the interest in RBS Morgans), China, Hong Kong, India and Taiwan; including the cash equities sales desks in the US and UK and;

-   Equity Capital Markets and Mergers & Acquisition businesses in Australia and China (excluding activities carried out by Hua Ying Securities), Hong Kong, India, Indonesia, Malaysia, Singapore, Taiwan and Thailand.

The principal benefit to RBS of the sale is to mitigate partially the shutdown costs otherwise associated with these businesses. The cash consideration, based on net asset values, is expected to be circa £75m. The transaction will complete by jurisdiction with the final completion expected to occur during Q4 2012. In certain jurisdictions, completion of the transaction is subject to regulatory conditions precedent. RBS will work closely with CIMB and existing clients of the sale businesses to ensure a smooth transition of staff, mandates and accounts, to the satisfaction of clients.

In Asia Pacific, RBS will maintain leading positions in debt financing, risk management and transaction services in the 11 countries where it currently operates.

Bruce Van Saun, RBS Group Finance Director, said, "We are pleased to reach agreement with CIMB on the transfer of these businesses over the course of 2012.  With this transaction we have now completed the sales process for various elements of the businesses we designated for exit in January."

Contacts:

Richard O'Connor

Group Investor Relations

[phone]

Michael Strachan                                             Allan Watt

Group Media Relations                                  RBS Communication and Marketing Asia Pacific

[phone]                                     [phone] (office).  [phone] (mobile)

NOTES:

RBS's wholesale business will be retaining its international footprint in 38 countries to ensure that it can serve customers' needs globally. We believe that despite current challenges to the sector, wholesale banking services play a central role in supporting cross border trade and capital flows, financing requirements and risk management and we remain committed to this business.

The Markets business will maintain its focus on fixed income, with strong positions in debt capital raising, securitisation, risk management, foreign exchange and rates. It will serve the corporate and institutional clients of all Group businesses. We intend to retain our leading investor products business internationally in equity and fixed income derivatives.

International Banking provides clients with 'one-stop shop' access to our debt financing, risk management and payments services.

In Asia Pacific, RBS will maintain leading positions in debt financing, risk management and transaction service in the 11 countries where we currently operate.

 

END

 

 

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