HSBC to Sell Argentina Business for $550.0 Million
By P.R. Venkat
HSBC Holdings has agreed to sell its Argentina business to the country's largest private financial group for $550.0 million as it looks to spend resources on higher-value opportunities.
Grupo Financiero Galicia will buy HSBC's Argentina business, which includes banking, asset management and insurance, together with $100 million of subordinated debt, the Hong Kong-listed lender said Tuesday.
HSBC is Europe's largest bank by market value but it generates most of its income in Asia, particularly in Hong Kong, where it runs a big retail and commercial lending business.
Under the deal, HSBC is to receive the purchase consideration via a combination of cash, loan notes and American Depositary Receipts from Grupo Financiero Galicia. The ADRs will account for around half of the consideration received and represents less than a 10% economic interest in Galicia.
"HSBC Argentina is largely a domestically focused business, with limited connectivity to the rest of our international network. Furthermore, given its size, it also generates substantial earnings volatility for the group when its results are translated into US dollars," HSBC Group Chief Executive Noel Quinn said.
Write to P.R. Venkat at venkat.pr@wsj.com
(END) Dow Jones Newswires
April 09, 2024 00:48 ET (04:48 GMT)
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