The WIM business provides services to high net worth and ultra high net worth clients in Singapore and Hong Kong.
After completion of the transaction, clients of Barclays WIM in Singapore and Hong Kong will become clients of Bank of Singapore.
The acquisition price will be 1.75% of Barclays WIM Singapore and Hong Kong’s assets under management at the completion of the deal.
The indicative purchase price will be $320m depending on Barclays WIM Singapore and Hong Kong’s AUM of $18.3bn at 31 December 2015.
The agreement, which is expected to be completed by the end of this year, is estimated to result in a pro forma decrease in risk weighted assets of about $1.3bn at completion.
Barclays Group CEO Jes Staley said: "On 1 March I announced we would accelerate the rundown of Barclays Non-Core, which is key to creating a simpler, more focused core bank.
"The sale of our Wealth and Investment Management business in Singapore and Hong Kong marks further progress in our aggressive pursuit of Non Core cost and risk weighted asset reductions."
The transaction does not affect on Barclays’ existing corporate and investment banking businesses in Asia.
Bank of Singapore is a private banking unit of Oversea-Chinese Banking Corporation (OCBC). Formerly known as ING Asia Private Bank, it was acquired by OCBC in 2009 from ING Group for $1.46bn.
Image: Barclays Bank agrees to sell its wealth and investment management business in Singapore and Hong Kong. Photo: courtesy of Barclays.
