HSBC to sell out of card-processing joint venture

Global banking titan HSBC announced that it is to offload its 44 per cent stake in Global Payments Asia-Pacific (GRAP), the card-processing joint venture with partner Global Payments.

GRAP was created in 2006 when HSBC sold a 56% shareholding to Global Payments. The sale of HSBC's 44% stake will see the bank pocket $242m in cash.

Nevertheless, HSBC said that following the sale, it still intends to use GRAP as the preferred strategic provider of card merchant acquiring services in Asia-Pacific, covering 11 countries and territories.

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"The transaction, which is subject to regulatory approvals and the agreement of the terms of ancillary commercial contracts, is expected to complete during the second half of 2012 and represents further progress in the execution of HSBC's strategy," the firm said.

BC