ZURICH, Feb 26 (Reuters) - EFG International AG expects Brazil’s Grupo BTG Pactual SA to be a silent investor when it takes a 20-30 percent stake in the Swiss bank, EFG’s chief executive told a Swiss newspaper.
As part of the 1.33 billion Swiss franc ($1.33 billion) deal for EFG to buy BTG Pactual SA’s Swiss private banking unit BSI, the São Paulo-based bank will receive enough shares to become EFG’s second biggest stakeholder.
“We expect that BTG will be a silent investor,” EFG International Chief Executive Joachim Straehle told Finanz und Wirtschaft in an interview published on Friday.
EFG will pay 975 million francs in cash, with BTG Pactual also getting a roughly 20 percent stake in EFG. This could rise to 30 percent if the share sale gets bogged down in tough markets.
Greece’s billionaire Latsis family will remain EFG’s biggest shareholder.
Through the BSI purchase, which was announced on Monday, EFG hopes to catapult itself into Switzerland’s top five money managers for the wealthy.
Just five months ago, BTG Pactual sealed a deal to buy BSI for 1.25 billion francs, only to decide it needed cash after the arrest of its billionaire founder André Esteves in November.
$1 = 0.9976 Swiss francs Reporting by Joshua Franklin; Editing by Ruth Pitchford