Industrial and Commercial Bank of China (ICBC) (601398.SH, 1398.HK) plans to purchase 80 percent stakes in Standard Bank Argentina, Standard Investments, and Inversora Diagonal for a total investment of $600 million, reports China Securities Journal, citing a filing by ICBC.

Upon the completion of the transactions, ICBC and Standard Bank London will jointly inject $100 million into Standard Bank Argentina.

According to ICBC, the stake purchases are an important part of its internationalization strategy as Argentina is the second-largest economy in Latin America, and will help to expand its network in the region.

Standard Bank London currently holds a 75 percent stake in Standard Bank Argentina, which has 103 branches throughout the country. The local Werthein and Sielecki families hold the remaining 25 percent.

Standard Investments is an Argentina-based fund management company which closely cooperates with Standard Bank Argentina. Standard Bank currently holds a 70 percent stake in it, while the local Werthein and Sielecki families hold the remaining 30 percent.

Inversora Diagonal is an Argentina-based provider of commercial services which has a close cooperative relationship with Standard Bank Argentina. Standard Bank currently holds a 70 percent stake in it, while the local Werthein and Sielecki families hold the remaining 30 percent.

Standard Bank London is an England-based investment company wholly-owned by Standard Bank Group.

ICBC holds a 20 percent stake in Standard Bank London and is its largest single shareholder.

Shares of ICBC were down 1.92 percent to trade at 4.08 yuan at 11:14 today.

Source:capitalvue