HSBC Holdings (00005) announced that the company wholly owns the subsidiary HSBC Latin Am...
According to the Zhitong Finance App, HSBC Holdings (00005) announced that the company wholly-owned subsidiary HSBC Latin America B.V., has signed a binding agreement to sell its Argentine business to Grupo Financiero Galicia (Galicia), the largest private financial group in Argentina.
HSBC Group CEO Qi Yaonian said, “We are delighted to agree to sell HSBC Argentina. This transaction is an important step in our execution strategy and allows us to focus our resources on higher-value opportunities on the international network. HSBC Argentina is a mainly domestic-focused company with limited connectivity to other parts of our international network. Furthermore, given its size, when its performance is converted to US dollars, it will also cause huge profit fluctuations for the Group. Galicia is a better place to invest in it and grow it.”
“We remain committed to Mexico and the US and serve our international clients through our global network and leading transactional banking capabilities.”
Galicia will acquire all of HSBC's business in Argentina at a cost of $550 million, including banking, asset management and insurance, and $100 million post-payment debt issued by HSBC Argentina and held by other HSBC entities. The price will be adjusted based on the performance of the business from December 31, 2023 to the time of delivery and the fair value profit and loss of HSBC's securities portfolio in Argentina.
HSBC expects to receive the purchase price in cash, loan notes, and Galicia's American Depositary Receipts. Of these, American Depositary Receipts account for about half of the cost received and less than 10% of Galicia's financial benefits.