Deal-hungry EFG International buys UBI's Luxembourg wealth business
By Joshua Franklin
ZURICH, April 28 (Reuters) - Swiss wealth manager EFG International has agreed to buy UBI Banca International's private banking activities in Luxembourg, its second purchase in two months as it seeks to bulk up its wealth management business.
UBI has around 3.6 billion euros ($4.1 billion) in client assets, EFG said in a statement on Thursday, adding that it expected to complete the deal in the first half of 2017.
While it did not disclose the price, EFG said that the deal was in cash and would have no "material impacts" on its regulatory capital position.
The purchase by Zurich-based EFG comes hot on the heals of a deal to buy Grupo BTG Pactual SA's Swiss private banking unit BSI.
EFG expects the 1.33 billion Swiss franc ($1.37 billion) BSI deal to catapult it into Switzerland's top-five money managers for the wealthy.
On Friday, EFG shareholders will vote at its annual meeting on whether to issue new shares to help finance the BSI deal.
EFG shares were up 0.5 percent 6.12 francs at 0725 GMT, outpacing a 0.5 percent slide in the European banking sector index. ($1 = 0.8817 euros) ($1 = 0.9674 Swiss francs) (Reporting by Joshua Franklin; Editing by Michael Shields)
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