American Express Sells Bank for $1.1B

American Express(AXP Quote) on Friday said it completed the sale of its international banking subsidiary in a deal that could ultimately be worth as much as $1.1 billion.

The New York-based credit card company will receive $300 million for the sale of American Express Bank Limited to Standard Chartered, plus the net asset value of AEBL on the closing date, bringing the deal to approximately $823 million.

Eighteen months after the close of the deal, Standard Chartered will enter into a put/call agreement for the AEBL subsidiary American Express International Depository Co., which issues investment certificates for the international bank. Under this arrangement, American Express can sell and Standard Chartered can buy AEIDC. The net value of this part of the deal is roughly $232 million bringing the total value of the transaction to $1.1 billion. ...