(RTTNews) - E*TRADE Financial
(ETFC) dropped in pre-market trading, down about 4 percent. The decline came on news that the company will sell shares of India's IL&FS Investsmart to HSBC.
The stock was down 19 cents around 9:05 am ET, sliding to $4.12. If pre-market losses hold, the stock will open at its lowest level since Wednesday.
E*Trade Financial, through its indirectly wholly-owned subsidiary E*TRADE Mauritius Limited, announced it signed a definitive agreement with HSBC, through its Group subsidiaries, to sell 100% of its equity shares in IL&FS Investsmart Limited, an India-based financial services organization, for Rs. 200 per share. The sale will yield approximately $145 million of proceeds to E*TRADE and result in a pre-tax gain of about $20 million to $30 million.
Donald Layton, Chairman and Chief Executive Officer of E*Trade, said, 'As part of our previously-announced plans to efficiently monetize our non-core assets to re-build our capital position, E*TRADE is selling its shares in Investsmart'.
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