Barclays Closes Sale Of Singapore & Hong Kong Wealth Unit
Zacks Investment Research | Nov 28, 2016 09:02PM ET
In sync with its efforts to simplify operations, Barclays (LON:BARC) PLC (NYSE:C) completed the sale of its Wealth and Investment Management (WIM) business in Singapore and Hong Kong. The unit has been sold to Bank of Singapore Limited, the wholly-owned private banking subsidiary of Oversea-Chinese Banking Corporation Limited (OCBC).
The sale value of $225 million represented 1.75% premium to Barclays WIM Singapore and Hong Kong’s assets under management (AUM) at closure. However, this is below the price of $325 million, which was announced at the time of signing the deal in April.
Further, the pro forma decrease in risk weighted assets (RWAs) will be roughly £0.8 billion. This is also below the previously estimated decline in RWAs of approximately £0.9 billion.
So, these were perhaps the reasons for price fall since the announcement of completion of the deal. Barclays’ shares declined nearly 2.6% on Nov 28 to close at $10.38 per share. Notably, in the last three months, the company shares have surged more than 16%, outpacing the gain of 3.1% for Zacks categorized Foreign Banks industry.
BARCLAY PLC-ADR Price
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