The world's local bank
HSBC sells its interest in HSBC Salud (Argentina) S.A. to Swiss Medical Group
30 December 2003
Following the exercise by New York Life Inc. of its put option over 40 per cent of HSBC Salud (Argentina) S.A. and the subsequent acquisition of this interest by HSBC, HSBC has agreed to sell the entire issued capital of HSBC Salud (Argentina) S.A. to Swiss Medical Group. The net negative equity of HSBC Salud (Argentina) S.A. as at 30 June 2003 (under UK GAAP) was ARS3.6 million.
HSBC Salud (Argentina) S.A. is one of the leading providers of prepaid medical insurance in Argentina. The company has a network of branches across Argentina serving over 158,000 individual and corporate clients.
Swiss Medical Group is a leading provider of health insurance services in Argentina with 300,000 clients and an annual turnover of ARS450 million.
The provision of prepaid health insurance is not a core business for the HSBC Group and, following the sale of a similar business in Brazil earlier in the year, it has decided to sell the business in Argentina. HSBC will use the majority of the sales proceeds to strengthen the capital position of its other businesses in Argentina.
The sale of HSBC Salud (Argentina) S.A. to Swiss Medical Group is effective 23 December 2003. Swiss Medical Group will take over the 422 employees who work for the company.
David Budd, CEO of HSBC Argentina, said: “We are confident that this will be a seamless transaction for our customers who will not be inconvenienced in any way. The agreement ensures that HSBC Salud customers will suffer no change in the coverage or the quality standards of the health insurance they are currently receiving.”
Useful tools
Increase font
Decrease font