Piper Jaffray Cos. said Friday it will incur restructuring costs of $9 million to $15 million for its previously announced plan to exit its business in Hong Kong.
The Minneapolis-based investment bank said on July 25 it would either close or sell its Hong Kong operation after losing $16 million in the previous 18 months. Friday's filing with the Securities and Exchange Commission confirmed the company will shut down its business there.
The company expects to recognize cash proceeds of between $13 million to $18 million, principally due to the realization of U.S. tax benefits from the shutdown.
At the time of the July 25 announcement, CEO Andrew Duff said Piper would keep a small presence, about 45 employees, in Asia for U.S. companies doing business there and will provide U.S.-based research on China-based companies.
PATRICK KENNEDY
