ZURICH, Nov 1 (Reuters) - Swiss private bank EFG International has completed the acquisition of rival BSI from Grupo BTG Pactual SA for a preliminary 1.06 billion Swiss francs ($1.07 billion), 10 million francs more than announced in summer.
The tie-up, originally expected to cost 1.328 billion francs before the purchase price was lowered to 1.05 billion in August, will let EFG become a pure play private bank with around 148 billion francs in assets under management, EFG said in a statement.
The total consideration of 1.06 billion francs for 100 percent of BSI is made of 575 million francs in cash, 86.2 million EFG shares valued at 454 million francs and 31 million francs of AT1 instruments issued by EFG International, EFG said.
The bank said the total capital ratio for the combined group stood at 19.4 percent under Swiss GAAP, meaning it had “a solid capital and liquidity position”.
“As a security for potential indemnification claims by EFG International, 51 million EFG shares have been transferred into a Swiss escrow account and will be locked up for two years,” it said.
The purchase price compares with an estimated IFRS tangible book value (TBV) for BSI of around 1.389 billion francs as at the date of closing. The acquisition for a price/TBV of 0.76 times will generate estimated negative goodwill of 329 million francs, it added.
$1 = 0.9888 Swiss francs Reporting by Silke Koltrowitz; Editing by Michael Shields