StanChart Spins off Private-Equity Arm in Deal With ICG

By Adam Clark

Standard Chartered PLC (STAN.LN) said Monday that it will spin off its private-equity business and sell the majority of its portfolio to Intermediate Capital Group PLC (ICP.LN), as the bank slims down its troubled principal-finance unit.

The portfolio consists of private-equity investments in 35 companies across Asia and Africa. Intermediate Capital Group said the deal is worth around 790 million pounds ($993 million) and transfers GBP2.85 billion in assets under management.

Standard Chartered said the management team of its private-equity unit will lead a new firm called Affirma Capital, which will continue to manage the unit for ICG. The deal is expected to be completed in the first half of 2019.

The sale is part of the emerging-markets-focused bank's commitment to cut back on its principal-finance business, which makes direct investments using the bank's and client's money. Standard Chartered said it will reduce its exposure to the business after it booked a major loss in 2016.

Standard Chartered said it expects to take a $160 million restructuring charge related to the deal.

Write to Adam Clark at adam.clark@dowjones.com; @AdamDowJones

(END) Dow Jones Newswires

December 17, 2018 05:39 ET (10:39 GMT)

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