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Standard Bank announces acquisition of Jardine Fleming Bank
Standard Bank Investment Corporation Limited and JP Morgan Chase & Co announced today that Standard Bank has agreed to acquire Jardine Fleming Bank Limited (JF Bank) from JP Morgan Chase. The acquisition is subject to regulatory approvals and other standard conditions and is expected to be completed by the end of July.
The purchase price, which will not exceed US$120 million, is based on the adjusted net asset value of JF Bank at completion plus a premium. The acquisition will not have a material impact on Standard Bank's earnings or net asset value in the short term, but is an important step in Standard Bank's strategy of exploiting growth opportunities in its chosen international markets, with China being identified as a particularly important country for its core products.
Established in 1970, JF Bank was the Hong Kong banking arm of the Jardine Fleming Group, one of the leading fund management and investment banking groups in Asia. JF Bank, which has total assets of US$1.8 billion, incorporates a very successful treasury operation, with a particularly strong position in the Hong Kong currency and money markets, as well as a sound base in banking and private client services. JF Bank maintains strong relationships with leading corporates and financial institutions throughout Asia. JF Bank's 50% interest in Pacific Finance (Hong Kong) Limited, a Hong Kong-based consumer finance business, will be transferred to the JPMorgan Chase group prior to completion.
According to Malcolm Wilde, Standard Bank's Chief Executive - Asia: "Standard Bank has been operating in Hong Kong for 10 years, but the addition of JF Bank's business will provide a substantially enhanced platform for Standard Bank's growth strategy in Asia. We will inject our existing Hong Kong operations into JF Bank and it is proposed that the bank will be renamed Standard Bank Asia Limited after an appropriate transitional period. The new bank will employ over 100 people in Hong Kong and will be an integral part of Standard Bank's international investment banking and private client business."
Robert Herries, JF Bank's Chief Executive, who will have the same position at the new bank, said: "We are delighted that the long term future of JF Bank has been settled. JF Bank's proven strengths will complement Standard Bank's established position in resource banking, trade finance and debt capital markets to the mutual benefit of our clients and shareholders."
Richard Mounce, Chief Operating Officer, Asia Pacific for JP Morgan said: "JF Bank has been a well-run and successful bank for many years, noted for its treasury activities in the Hong Kong money markets, commercial banking, structured finance and wealth management. However, many of the bank's activities duplicate those carried on by the JP Morgan group in Hong Kong. We took the decision that the interests of JF Bank's clients and staff would be best be served by the acquisition of JF Bank by another established financial institution. We are indeed pleased that we have reached agreement with Standard Bank for such a sale and I am sure that the combination of the business of JF Bank with Standard Bank's existing operations in Hong Kong will allow Standard Bank to substantially grow its franchise here in Hong Kong."
Standard Bank is the leading banking group in South Africa with total assets of US$38 billion and 34 000 employees. The new bank will be part of the group's international investment banking activities which are focused around Standard Bank London Limited, a UK authorised bank and 20 other international offices.
JP Morgan Chase & Co is being advised by JP Morgan. Standard Bank is being advised by Standard Bank London Limited's Corporate Finance Division.
Enquiries:
Standard Bank
Chief Executive, Asia: Malcolm Wilde Tel: +65 5334111
Corporate Finance: Steve Naude Tel: +44 20 78153007
Investor Relations: Kim Howard Tel: +27 11 6367811
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