Mumbai: Royal Bank of Scotland on Monday said it has reached an agreement with Malaysian financial services major CIMB Group to sell its cash equities, equity capital markets and M&A business in India and in 10 other Asia-Pacific markets for about 75 million pounds (USD 120 million).
According to the English lender, cash equities businesses in India, Australia (excluding the interest in RBS Morgans), China, Hong Kong, and Taiwan, including the cash equities sales desk in the US and Britain, will be sold to the CIMB
Similarly, RBS will exit equity capital markets and M&A businesses in India, Australia and China (excluding activities carried out by Hua Ying Securities), Hong Kong, Indonesia, Malaysia, Singapore, Taiwan and Thailand.
RBS had entered into an agreement with HSBC India to sell its retail banking business way back in 2010, but is yet to get the Reserve Bank of India's nod for the same.
"The principal benefit of this sale to RBS 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 75 million pound," the bank said in a release.
While transactions are likely to be completed by the fourth quarter of 2012, it will depend on regulatory approvals in certain countries, it added.
About its future business plan in these regions, the bank said it will continue in debt financing, risk management and transaction services businesses.
"In Asia Pacific, RBS will maintain leading positions in debt financing, risk management and transaction services in the 11 countries where it currently operates," it said.
First Published: Monday, April 2, 2012, 21:10