SVB Financial, the parent company of bankrupt Silicon Bank (SVB), is seeking to sell its other subsidiaries, SVB Capital and SVB Securities.
According to foreign media outlets such as TechCrunch on the 13th (local time), SVB Financial announced that it is seeking the sale of these subsidiaries that have no direct link to SVB bankruptcy. It is said that SVB Financial is considering a strategic alternative to use the assets of these two subsidiaries as an option, rather than a sale.
SVB Financial explained that a five-member restructuring committee will review the next steps for these subsidiaries.
The news came hours after it became known that HSBC had agreed to acquire SVB UK for £1 (about 1,580 won), TechCrunch reported. Even if nominally SVB Financial is still operating, it will take time to stably dispose of the rest of its assets, including subsidiaries. It is known that HSBC plans to inject 2 billion pounds (approximately 3.2 trillion won) of liquidity into SVB’s British subsidiary, which it acquired at a bargain price.
The two subsidiaries are not directly affiliated with SVB. On this day, SVB Financial said, “Both subsidiaries are separate,” and “are not part of SVB, which is under the jurisdiction of the Federal Deposit Insurance Corporation (FDIC) and the Federal Reserve System (Fed).”
However, TechCrunch reported that it was clear that the SVB bankruptcy was affecting the operation of the two subsidiaries even before this announcement, and both subsidiaries announced through their websites that they had nothing to do with SVB after the SVB crisis broke out.
SVB Securities is a company that has provided services such as M&A advisory and capital market financing, focusing on medical and technology companies. SVB Capital is the venture capital (VC) of SVB Financial, and is said to have invested in various startups. In 2021, he led a $100 million stock investment to significantly grow a startup.
Meanwhile, FDIC, SVB’s bankruptcy trustee, failed to find a buyer for SVB in the first auction held on the 12th. At the time, it was reported that PNC Financial Group showed interest in the acquisition and held brief discussions with the FDIC, but the group eventually withdrew its intention to bid, CNBC reported.
FDIC is said to be planning a second auction, but the specific schedule has not yet been announced.
Source: Donga
Mark Jones is a world traveler and journalist for News Rebeat. With a curious mind and a love of adventure, Mark brings a unique perspective to the latest global events and provides in-depth and thought-provoking coverage of the world at large.