HSBC makes considerable acquisitions

[img_assist|nid=7574|title=|desc=|link=none|align=left|width=100|height=85]An agreement was signed by E*Trade's wholly owned subsidiary E*Trade Mauritius to sell all of its 43.85% stake in the Indian brokerage for Rs200 per share to the HSBC. The sale is said to return approximately $145 million of proceeds and result in a pre-tax earnings of approximately $20 to $30 million.

According to Donald Layton, chairman and CEO, E*Trade, the sale is a part of their "previously-announced plans to efficiently monetise our non-core assets to re-build our capital position".

But this purchase is not the last to be made by HSBC. The financial institution is going to acquire an additional 29.36% shareholding in the Indian unit from Infrastructure Leasing and Financial Services Limited, which founded the business.

Besides, an open offer is to be made by HSBC to acquire up to 20% of the remaining shares in Investsmart.

As per words of Sandy Flockhart, group MD and CEO, HSBC Asia Pacific the purchase of Investsmart meets the stated strategy to invest first in growing transition economies.

"India represents a high priority market for us. This investment is of strategic importance to HSBC as it gives us a foothold in one of the largest retail broking markets in the world," adds Flockhart.