LONDON (Thomson Financial) - Etrade Financial Corp said it has agreed to sell its stake in Indian stockbrokers IL&FS Investsmart Ltd to HSBC Holdings in a deal the online U.S. broker expects to yield about $145 million.
The size of the stake was not disclosed, but the Sunday Times said it amounted to about 44 pct of the Indian company. It said HSBC has amassed a 73 percent holding in IL&FS Investsmart for $260 million and will now launch an offer for the rest of the shares.
Etrade said in a statement on Saturday that it agreed to sell its shares in the Indian company to HSBC for 200 rupees per share, and that the deal is expected to result in a pretax gain of $20 million to 30 million. tf.TFN-Europe_newsdesk@thomson.com hjp COPYRIGHT Copyright Thomson Financial News Limited 2008. All rights reserved. The copying, republication or redistribution of Thomson Financial News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Financial News.