Tuesday, November 25, 2008

StanChart to launch £1.78 bln rights issue

Standard Chartered Plc<2888>, a London-based international bank with operations in more than 70 countries, Monday announced it plans to raise about £1.78 billion via a rights issue to strength its capital base and give it the flexibility to take advantage of opportunities in the current turbulent markets.

The British lender said it would offer 30 new ordinary shares for every 91 existing ordinary shares. The issue price of 390 pence per share comes at a discount of 48.7% to its latest closing price of 759.5 pence on Nov. 21. The issue price for Hong Kong shareholders is HK$45.11 apiece.

The bank's biggest shareholder, the Singapore state -owned investment company Temasek, plans to take up its rights and also participate in the underwriting of the issue, the bank said.

Meanwhile, the other underwriters include JPMorgan Chase & Co, UBS AG and Goldman Sachs Group Inc.

Currently, Temasek holds 19% stake in Standard Chartered.

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