Standard Chartered has sold its consumer finance units in Hong Kong and Shenzhen to a consortium led by China Travel Financial.
The sale of Hong Kong-based PrimeCredit Limited and Shenzhen PrimeCredit is part of the bank’s strategy to dispose of noncore businesses and boost share price.
The deal is expected to fetch the bank $600m to $700m, though the precise value has not been divulged yet.
Following the completion of the deal, the consortium will also sell a portfolio of PrimeCredit’s residential mortgages with a book value of about HK$5.9bn ($761m) to Hong-Kong based Bank of East Asia.
The other members of the consortium include Pepper Australia and York Capital Management Global Advisors.