8/23/2007 4:39:46 AM Standard Chartered (STAN.L) on Thursday said that it entered into a strategic partnership with Securities Trading Corporation of India Limited, or STCI, to acquire a 49% stake in UTI Securities Limited for about US$36 million cash. Standard Chartered expects the acquisition to close by October 2007, subject to certain conditions, including regulatory approvals.
Standard Chartered noted that as at 31 March 2007, the gross assets that are the subject of the Transaction was US$19 million and UTISEL's total gross assets were US$38 million.
As per the agreement, STCI and Standard Chartered have provided for necessary options to raise Standard Chartered's stake in stages to 100% by 2010, subject to necessary regulatory approvals.
Standard Chartered noted that the entry into securities broking would enable it to widen its product offering in Wealth Management and Private Banking within India, and the non-resident Indian product portfolio in its footprint countries.
