Chinese bank to buy 60% in unit of South Africa's Standard Bank

ICBC cash machines in Beijing on January 29, 2011ICBC cash machines in Beijing on January 29, 2011

South Africa's Standard Bank Group said Wednesday said it had agreed to sell a majority stake in its markets division to the Industrial and Commercial Bank of China for $765 million.

The bank said the offer for London-based Global Markets business presented a chance to "release a significant amount of capital for the group from its operations outside Africa."

South Africa's Standard Bank Group said Wednesday said it had agreed to sell a majority stake in its markets division to the Industrial and Commercial Bank of China for $765 million.

The bank said the offer for London-based Global Markets business presented a chance to "release a significant amount of capital for the group from its operations outside Africa."

"Based on the net asset value of Standard Bank Plc and other relevant operations as at the end of June 2013, the consideration for this transaction is estimated to be $765 million," the bank said in a statement.

For that state-backed ICBC will take a 60 percent share of the unit.

The offer is subject to approval of shareholders of Standard Bank, who are expected to meet in March.

The Johannesburg-headquartered bank said it was also granting ICBC a five-year option to acquire an additional 20 percent stake in the London-based business.

In 2007, ICBC bought a 20 percent stake in South Africa's Standard Bank for $5.4 billion, giving it access into the African market.

Standard Bank chief for investment banking, David Munro, hailed the partnership as reflective of "direct linkages between emerging market economies" who are "increasingly important contributors to the global economy."