Standard Chartered to buy Taiwanese stake

29 September 2006

UK-based lender Standard Chartered has confirmed that it will buy a stake in Taiwan's Hsinchu International Bank, following earlier local press reports of an impending deal.

According to the British bank, the deal will cost around $1.2 billion, purchasing over 30 per cent of the company, based on Friday's closing price, although a premium of about 40 per cent will also be paid.

Earlier, trading in Standard Chartered shares was suspended after Taiwanese press reported rumors that a deal was imminent.

Commenting on the deal, Standard Chartered's chief executive Mervyn Davies said that the purchase was an ideal opportunity to grow in an already familiar market.

"Hsinchu is an outstanding opportunity to grow Standard Chartered's presence in one of our core markets," he said.

"We will drive further growth by combining Standard Chartered and Hsinchu's products and processes as we have done successfully in other markets."

Standard Chartered already makes around two thirds of its profit from Asia, with many banks now appearing to show renewed interest in Taiwanese financial companies.

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