HSBC - Adios Argentina: HSBC Divests Banking Operations In Argentina For $550M | Benzinga
HSBC Holdings plc’s (NYSE:HSBC) wholly-owned subsidiary, HSBC Latin America B.V., inked a binding agreement to sell its business in Argentina to Grupo Financiero Galicia (NASDAQ:GGAL).
As per the terms, Galicia will acquire all of the bank’s Argentina business covering banking, asset management, and insurance, together with $100 million of subordinated debt for a consideration of $550 million.
HSBC anticipates receiving the purchase consideration in a combination of cash, loan notes, and Galicia’s American Depositary Receipts (ADRs), with ADRs accounting for around half of the consideration received and representing less than a 10% economic interest in Galicia.
The bank expects a $1.0 billion pre-tax loss ...