Following a tumultuous 2014 for Standard Chartered Bank, the bank's largest investor, Temasek Holdings, started showing indications that it was contemplating offloading at least a portion of its huge shareholdings in Standard Chartered Bank. This case attempts to give a reasonable valuation of Standard Chartered Bank's inherent worth, in addition to rationalize the most suitable method for Standard Chartered Bank to raise resources to meet the higher capital requirements under Basel III regulatory rules.
Assuming that Standard Chartered Bank decided to hold on to its sizeable bank investments and to raise the higher capital requirements to fill, what could be some potential financing alternatives? Would it help to attract more bank deposits, raise debt, or go for a seasoned offering? What would be the impact of these financing alternatives? Finally, what would be a suitable recommendation if one took the valuation results under consideration, on how to raise the resources? Zsuzsa R. Huszar is associate with NUS Business School. Weina Zhang is associate with NUS Business School.
Standard Chartered Bank Valuation and Capital Structure case study solution
PUBLICATION DATE: December 08, 2015 PRODUCT #: W15568-HCB-ENG
This is just an excerpt. This case is about FINANCE & ACCOUNTING
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