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Any definitive sale of RBS’s Asian assets is likely around eight weeks away, a source close to RBS and a separate person briefed on the situation told dealReporter.
The process itself technically started back in October, with some bids even being submitted around December, but has progressed in “fits and starts” as RBS became nationalized in October, seeing dramatic management changes, the bank source said.
”It’s only really begun again three to four weeks ago. I think we’re at the first round bid stage. IMs (Information memorandums) have gone out,” the source said. ”I know there are some data rooms open and people have done some work. It’s got a bit further to go before you announce anything, probably six to eight weeks away unless they rush it out,”.
However, the person briefed on the situation said it was his understanding that IMs would only be sent at the end of this week or the beginning of next and that a conclusion could be two to three months away.
Yesterday, it was reported that ANZ is prepared to offer approximately GBP 1bn (EUR 1.1bn) for commercial and retail assets in Indonesia, Taiwan, India and other Asian countries.
While RBS is seeking to sell off retail and commercial operations in India, China, and the rest of Asia, the bank would like to keep its global banking and markets division, the bank source said. RBS’s leveraged finance, acquisition finance, and aircraft leasing divisions are expected to be shut down with proprietary trading operations set to close or managed out, he added.
DCM, ECM and M&A will remain with investment advisory in India, Singapore, Hong Kong, China, Japan, and Australia, the source said.
ANZ and Standard Chartered have been in the process a long time with HSBC also looking at the operations, the bank source said. UBS might be interested in picking up some of the Southeast Asian assets as it has just raised funds via a rights offering, he added.
He said ANZ was considering a play for the investment banking department even though it is not technically for sale.
“They’ll sell off the retail and commercial to the highest bidder but they all want different bits that overlap so you have to work out how to sell it,” he said.
It has previously been reported that Morgan Stanley has been retained on RBS’s behalf.
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