British banking group HSBC Holdings Plc (LON:HSBA) announced it had agreed to sell its operations in Colombia, Peru, Uruguay and Paraguay to Colombian peer Banco GNB Sudameris SA, owned by the Gilinski Group, for USD400m (EUR310.5m) in cash.
HSBC expects to close the divestment of the activities in Colombia and Peru in the fourth quarter of the year, while the sale of the businesses in Uruguay and Paraguay is seen to be concluded in the first quarter of 2013, it said. All of the transactions are conditional and need to obtain regulatory clearance. The total purchase price will be adjusted to reflect the divested businesses’ net asset value at completion.
The company unveiled that its Latin American unit was holding talks on the matter last week. The disposals are part of HSBC’s strategy and mirror its desire to concentrate on the operations with the greatest potential for sustainable growth, said Antonio Losada, president and chief executive officer of HSBC Latin America and the Caribbean.
The activities being sold consists of 62 branches throughout four countries and had a gross asset value of USD4.5bn as at the end of December 2011.
London-based HSBC is a banking and financial services organisation with around 7,200 offices in more than 80 countries worldwide. At the end of March 2012, the group’s assets amounted to USD2.64trn.