UPDATE 4-EFG agrees to buy BSI from Brazil's BTG Pactual for $1.3 bln

lunes 22 de febrero de 2016 18:19 GYT
 

* EFG International to buy BSI Ltd from BTG Pactual

* Deal worth $1.34 billion excluding future BSI profits

* EFG plans to pay for acquisition with cash, stock

* BTG Pactual, EFG still to decide over board seats (Adds details, comments from BTG Pactual banker)

By Joshua Franklin

ZURICH, Feb 22 (Reuters) - EFG International AG has agreed to pay 1.33 billion Swiss francs ($1.34 billion) for Grupo BTG Pactual SA's Swiss private-banking unit BSI Ltd in a deal that could catapult it into the nation's top-five money managers for the wealthy.

The acquisition, which comes five months after Brazil-based BTG Pactual sealed a deal to buy BSI for 1.25 billion francs, will be paid for in cash and stock. Under terms of the deal, EFG will incorporate BSI, making BTG Pactual the No. 2 partner in the combined firm after Greece's Latsis family.

Prior to the BSI deal, EFG had been the 12th-largest player in a market where consolidation has gained traction as smaller banks struggled with tougher oversight and an erosion of Switzerland's secrecy laws. For BTG Pactual, the sale brings in much-needed cash after the November arrest of founder André Esteves triggered massive client money outflows.

Reuters reported last Friday, citing sources, that BSI could be valued at 1.6 billion francs, giving BTG Pactual up to 30 percent of the combined entity. BTG Pactual and EFG had been in exclusive negotiations over BSI for about a month.   Continuación...