Standard Bank releases controlling stake to China bank

Standard Bank Group said it would sell a controlling stake in its UK-based global markets business to Industrial and Commercial Bank of China for about 10% less than projected after a write-down on metal stockpiles. The US$690 million (N$8 billion) for the 60% stake in Standard Bank was about US$75 million (N$870 million) below the figure the lender estimated in June, it said yesterday. Preliminary estimates showed that the bank’s full-year earnings might be 5% higher or lower than 2013’s results, it said. It is due to report next month. The valuation of the trading assets fell after Standard Bank was forced to make write-downs on its aluminium stockpiles entangled in a Chinese fraud investigation. The bank, which was not accused of any wrongdoing, started legal proceedings in July after US$167 million (N$1.9 billion) of aluminium it claimed ownership of, was placed under lockdown by authorities probing irregularities at warehouses in Shandong Province. JOHANNESBURG BLOOMBERG