E*TRADE FINANCIAL Corporation (NASDAQ:ETFC), through its indirectly
wholly-owned subsidiary E*TRADE Mauritius Limited, today announced it
has signed a definitive agreement with HSBC, through its Group
subsidiaries, to sell 100 percent of its equity shares in IL&FS
Investsmart Limited (“Investsmart”),
an India-based financial services organization, for Rs. 200 per share.
The sale will yield approximately $145 million of proceeds to E*TRADE
and result in a pre-tax gain of approximately $20 to $30 million.
The signing of the definitive agreement requires HSBC to make an open
offer for shares of Investsmart under Regulations 10, 12 and other
applicable provisions of the Securities and Exchange Board of India
(SEBI) Regulations, 1997 (the “Offer”).
The Offer is subject to the receipt of applicable regulatory approvals
in India. The sale from E*TRADE to HSBC will close once the condition
precedents are fulfilled which includes all required regulatory
approvals and the completion of the Offer. This is anticipated to occur
within 120 days.
“As part of our previously-announced plans to
efficiently monetize our non-core assets to re-build our capital
position, E*TRADE is selling its shares in Investsmart,”
said Donald H. Layton, Chairman and Chief Executive Officer, E*TRADE
FINANCIAL Corporation. “Our partnership with
IL&FS was an effective combination of skills and has proven a good
investment for both parties; we wish the company future success.”
About E*TRADE Mauritius Limited
E*TRADE Mauritius Limited, an indirectly wholly-owned subsidiary of
E*TRADE FINANCIAL Corporation, identifies strategic investment
opportunities throughout the Indian Ocean Rim.
About E*TRADE FINANCIAL
The E*TRADE FINANCIAL family of companies provides financial services
including trading, investing and banking for retail and institutional
customers. In the U.S., securities products and services are offered by
E*TRADE Securities LLC (Member FINRA/SIPC) and bank products and
services are offered by E*TRADE Bank, a Federal savings bank, Member
FDIC, or its subsidiaries.
Important Notice
E*TRADE FINANCIAL, E*TRADE and the E*TRADE logo are trademarks or
registered trademarks of E*TRADE FINANCIAL Corporation. The statements
contained in this news release that are forward-looking are based on
current expectations that are subject to a number of uncertainties and
risks, and actual results may differ materially. The uncertainties and
risks include, but are not limited to, changes in market activity,
anticipated increases in the rate of new customer acquisition, the
conversion of new visitors to the site to customers, the activity of
customers and assets held at the institution, seasonality, macro trends
of the economy in general and the residential real estate market,
instability in the consumer credit markets and credit trends, rising
mortgage interest rates, tighter mortgage lending guidelines across the
industry, increased mortgage loan delinquency and default rates,
portfolio growth, portfolio seasoning and resolution through
collections, sales or charge-offs, the development and enhancement of
products and services, competitive pressures (including price
competition), system failures, economic and political conditions,
changes in consumer behavior and the introduction of competing products
having technological and/or other advantages. Further information about
these risks and uncertainties can be found in the information included
in the annual reports previously filed by E*TRADE FINANCIAL Corporation
with the SEC on Form 10-K (including information under the caption "Risk
Factors") and quarterly reports on Form 10-Q.
© 2008 E*TRADE FINANCIAL Corporation. All
rights reserved.
