HSBC Holdings Regulatory News (HSBA)

17 Jan 2007 08:53

HSBC Holdings PLC17 January 2007 HSBC TO ACQUIRE CHAILEASE CREDIT SERVICES TO BECOME LARGEST TWO-FACTOR EXPORT BUSINESS IN TAIWAN The Hongkong and Shanghai Banking Corporation Limited has entered into anagreement to acquire 100 per cent of Chailease Credit Services Co., Ltd., one ofTaiwan's leading factoring companies. Taiwan is the world's second largest factoring market, a testament to theisland's prominent position in Asian trade. Chailease Credit Services, the sixthlargest factor in Taiwan, is the factoring arm of Chailease Finance Company. Ithas a gross asset value of US$99.6 million (about NT$3,264 million) at the endof 2005 and focuses mainly on two-factor export trade, handling transactions inwhich both buyer and seller use factoring. HSBC currently has a small factoring operation in Taiwan. This acquisition willincrease considerably HSBC's share of a large market and will add substantiallyto its increasingly popular cross-border services in the region. Michael Smith, President and Chief Executive Officer of The Hongkong and Shanghai Banking Corporation Limited, said: "The acquisition of the ChaileaseCredit Services factoring business is a good fit with our global commercial banking strategy. It will turn HSBC into the largest two-factor export businessin Taiwan, the world's second largest factoring market by turnover. It will alsoprovide a solid base for us to expand our receivables finance business in the Greater China region through economies of scale, experienced staff and integrated systems." The acquisition, which is subject to regulatory approval and other conditions,is expected to be completed in the first quarter of 2007. 1. HSBC in TaiwanHSBC's presence in Taiwan dates back to 1885 when The Hongkong and ShanghaiBanking Corporation Limited appointed an agent in Tamsui. A full service branchwas established in Taipei in 1984. The bank now has a network of eight branchesisland-wide and employs some 2,300 staff. In September, the bank launched HSBCDirect, a direct banking service for the Taiwan consumer market that offersconsistently higher rates of returns. 2. Chailease Credit ServicesChailease Credit Services Co., Ltd. (CCS) is a wholly owned subsidiary ofChailease Finance Co. Ltd. (CFC). CCS commenced its factoring operation in 1987and was spun off from CFC in 2000. CCS provides factoring services andtrade-related consultancy to corporates in Taiwan. It has a gross asset value ofUS$99.6 million (about NT$3,264 million) at the end of 2005 and 45 staff. 3. The HSBC GroupThe Hongkong and Shanghai Banking Corporation Limited is the founding and aprincipal member of the HSBC Group which, with around 9,500 offices in 81countries and territories and assets of US$1,738 billion at 30 June 2006, is oneof the world's largest banking and financial services organisations. This information is provided by RNS The company news service from the London Stock Exchange