Advertisement
New Zealand markets close in 4 hours 50 minutes
  • NZX 50

    12,324.75
    +14.84 (+0.12%)
     
  • NZD/USD

    0.5981
    -0.0000 (-0.01%)
     
  • NZD/EUR

    0.5488
    +0.0000 (+0.01%)
     
  • ALL ORDS

    8,166.40
    -42.80 (-0.52%)
     
  • ASX 200

    7,931.70
    -39.90 (-0.50%)
     
  • OIL

    79.95
    +0.17 (+0.21%)
     
  • GOLD

    2,397.10
    +2.40 (+0.10%)
     
  • NASDAQ

    19,822.87
    +300.25 (+1.54%)
     
  • FTSE

    8,198.78
    +43.06 (+0.53%)
     
  • Dow Jones

    40,415.44
    +127.91 (+0.32%)
     
  • DAX

    18,407.07
    +235.14 (+1.29%)
     
  • Hang Seng

    17,635.88
    +218.20 (+1.25%)
     
  • NIKKEI 225

    39,599.00
    0.00 (0.00%)
     
  • NZD/JPY

    93.6860
    -0.1300 (-0.14%)
     

SocGen (SCGLY) Faces Difficulty in Offloading Securities Unit

Societe Generale SCGLY is finding it difficult to get hold of an appropriate buyer for its securities services unit. According to a Reuters report, citing sources close to the matter, potential bidders have been hesitant because of the price that France’s third-largest lender is seeking for the business.

Per media reports, SCGLY wants more than 1 billion euros ($1.1 billion) for the unit.

Since last year, SCGLY has been trying to offload Societe Generale Securities Services as part of its efforts to boost valuation by getting rid of poorly performing businesses.

According to one source, while State Street Corporation STT has been in talks to buy the securities unit, the discussions have been presently delayed.

Neither SocGen nor STT made any comments on the matter.

At the end of December 2023, Societe Generale Securities Services had 4.9 trillion euros in assets under custody, making it the second-biggest assets custodian in France.

While SCGLY is still open to a sale, provided it gets a correct price for the unit, offloading the securities services unit is no longer a priority for the bank because the unit provides a regular stream of liquidity that is needed by the other parts of the business.

Over the past six months, SCGLY shares have gained only 1.7% compared with the industry’s growth of 10.7%.

 

Zacks Investment Research
Zacks Investment Research


Image Source: Zacks Investment Research

ADVERTISEMENT

 

Currently, SocGen carries a Zacks Rank #4 (Sell).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Divestitures by Other Finance Firms

Last month, U.S. bank Truist Financial TFC completed the divestiture of the remaining 80% stake in its insurance subsidiary — Truist Insurance Holdings ("TIH") — to Stone Point Capital and Clayton Dubilier & Rice.

Following the sale, TFC executed a balance sheet repositioning strategy, which is expected to help the company generate higher revenues this year than previously expected.

Chairman and CEO of TFC, Bill Rogers, said, “The sale of TIH significantly enhances Truist's financial profile and positions Truist to invest in and grow its core banking businesses.”

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

State Street Corporation (STT) : Free Stock Analysis Report

Societe Generale Group (SCGLY) : Free Stock Analysis Report

Truist Financial Corporation (TFC) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research