EFG International will end up paying CHF 971 million for BSI, which is CHF 89 million less than the preliminary purchase price of CHF 1.06 billion, EFG International said in a statement.
Following discussions with BTG Pactual about the final price tag for BSI, EFG International has agreed to an aggregate purchase consideration comprising 86.2 million EFG International shares, CHF 31 million worth of EFG International AT1 instruments, and a reduced cash component – which has been revised from CHF 575 million in November to CHF 486 million.
As a result of the reduced price, BTG Pactual will pay CHF 89 million to EFG, CHF 57.8 million of which will be paid in cash “immediately”, while the balance will be repaid either in cash in 12 months’ time, or, subject to FINMA approval, through the repurchase of the CHF 31 million worth of EFG International AT1 instruments previously issued.
“The impact of this agreement on the current capital ratios of EFG International will be a net reduction of approximately 1 percentage point,” the bank said.
The price revision comes after a lengthy investigation in Singapore into BSI’s involvement in flows relating to Malaysian investment state fund 1MDB.
In June, EFG said the BSI integration had entered its final leg, after the bank completed the legal and operational integration of BSI in Monaco.
The last step of the integration process, an IT migration in Switzerland, is expected to be completed by the end of 2017, EFG said.