Standard Chartered announced in Hong Kong that its 100 percent owned subsidiary Standard Chartered Links (HK) limited Monday signed an agreement to acquire Advantage Limited, the parent of PrimeCredit, allowing Standard Chartered to enter the growing consumer finance business in Hong Kong.

The acquisition price will be approximately 980 million Hong Kong dollars (about 126 million US dollars), based on the adjusted net book value at June 30, 2004. The transaction is subject to regulatory approvals and is expected to close by the end of September this year.

Mike Denoma, group executive director and global head of Consumer Banking of Standard Chartered, said "with the establishment of a credit data bureau in Hong Kong and an economic recovery well underway, we feel that this is the right time to enter the consumer finance market in Hong Kong."

Prime Credit provides loans to the lower income segment in Hong Kong. It has 14 branches and approximately 200 staff.

Source: Xinhua