Julius Baer to acquire ING Bank (Switzerland) Ltd.
(Thomson Reuters ONE) - Corporate news announcement processed and transmitted by Hugin AS.The issuer is solely responsible for the content of this announcement. ------------------------------------------------------------------------------------ Zurich, 7 October 2009 --- Julius Baer Group Ltd. ('Julius Baer'),the Swiss private banking group, announced today that it reached anagreement to acquire ING Bank (Switzerland) Ltd. ('ING Bank') for CHF520 million in cash, including surplus capital of CHF 170 millionbased on a target Tier 1 ratio of 12%. At the end of August 2009, INGBank had assets under management of CHF 15 billion, adding 10% toJulius Baer's overall private client assets and doubling its presencein Geneva.ING Bank which employs a staff of 310, will be integrated into BankJulius Baer, creating estimated pre-tax synergies of CHF 35 millionp.a. The acquisition is expected to be EPS neutral in 2010, stronglyaccretive from 2011 onward, reaching a high single-digit percentagein 2012. With this acquisition which sets combined assets undermanagement to over CHF 160 billion as of August 2009, Julius Baercontinues to strengthen its position as the leading pure privatebanking group in Switzerland. Pending regulatory approvals, theclosing of the transaction is expected to take place in the firstquarter of 2010.Julius Baer has agreed to acquire ING Bank (Switzerland) Ltd.,headquartered in Geneva, a fully-owned subsidiary of ING Group NV,including its subsidiaries in Monaco and Jersey. This pure privatebanking business oversaw total assets under management of ca. CHF 15billion at the end of August 2009, adding roughly 10 % to JuliusBaer's overall asset base and doubling its business in Geneva.Raymond J. Baer, Chairman of Julius Baer, said: "Julius Baer istaking advantage of current market developments in acquiring a highquality, profitable asset with a strong track record. The client baseis similar to the one of Julius Baer and ING Bank's employees sharethe same client-centric passion, making it a true cultural fit."ING Bank employs a total staff of 310, of which 80 relationshipmanagers. It offers a comprehensive range of services and products,such as discretionary and advisory portfolio management based on openarchitecture as well as family office, trust and execution services.ING Bank's roots in Switzerland date back to 1962, when BanqueBruxelles Lambert established a subsidiary in Geneva. ING Bank isstrongly capitalised and has a net asset value of about CHF 380million as of August 2009.Goodwill / AuM 0.9% - Acquisition funded by excess capitalJulius Baer will pay a total consideration of CHF 520 million incash, including surplus capital of approximately CHF 170 million. Interms of multiples, Julius Baer is paying 0.9% Goodwill / AuM and,adjusted for surplus capital, 2.3% for the AuM of the business. Thepurchase price will be fully funded by existing excess capital,leaving Julius Baer with a pro forma BIS Tier 1 ratio of about 16%,still well above its 12% target. The surplus capital of ING Bank willbe allocated to Julius Baer.The transaction is estimated to bring significant pre-tax synergiesof ca. CHF 35 million p.a. primarily due to the integration of thedifferent IT and back-office operations as well as streamlining ofstaff functions. Of total estimated integration costs ofapproximately CHF 65 million, about two thirds are expected to bebooked in 2010. The integration is foreseen to be completed by mid2010. The acquisition is expected to be EPS neutral in 2010 andstrongly accretive from 2011 onward, reaching a high single-digitpercentage in 2012.Boris F.J. Collardi, CEO of Julius Baer, added: "This transactionfully matches the strategic and financial criteria which we havecommunicated. We are pleased to add significant scale to our domesticand European platforms while strengthening our business in Centraland Eastern Europe, Russia and other growth markets. Clients willbenefit from new opportunities as a result of strengthened localfranchises. With our track record of successful integrations, we arelooking forward to working with our new colleagues and to a smoothintegration process."Well diversified client base - Integration into Bank Julius Baer -Strong in growth marketsWhile the transaction will add to Bank Julius Baer's domesticbusiness in the French-speaking part of Switzerland as well as toselected European core markets, it will also substantially increaseits business volume in Central and Eastern Europe, Russia and othergrowth markets, providing an attractive base for future growth.Julius Baer will rebrand ING Bank and merge its local operations inSwitzerland (Geneva, Basel, Crans Montana, Lausanne, Lugano andZurich) and transfer the business of its subsidiaries in Monaco andJersey to Julius Baer's existing operations.Pending approval by the relevant authorities and other customaryconditions, the closing of the transaction is expected to take placein the first quarter of 2010.ContactsMedia Relations: +41 58 888 8888Investor Relations: +41 58 888 5256About Julius BaerJulius Baer is the leading Swiss pure private banking group, with anexclusive focus on servicing and advising private clients. JuliusBaer's total client assets amounted to CHF 211 billion at the end ofJune 2009, with assets under management accounting for CHF 142billion (excluding ING Bank). With origins dating back to 1890, BankJulius Baer & Co. Ltd. is both the principal operating company andrenowned Swiss private bank of the Julius Group Ltd., whose sharesare listed on the SIX Swiss Exchange and form part of the SwissMarket Index (SMI), which comprises the 20 largest and most liquidSwiss stocks.Julius Baer employs a staff of over 3 000 in more than 20 countriesand some 40 locations, including Zurich (head office), Buenos Aires,Dubai, Frankfurt, Geneva, Hong Kong, London, Lugano, Milan, Moscowand Singapore.For more information visit our website at www.juliusbaer.com --- End of Message ---Julius Baer Group Ltd.Bahnhofstrasse 36, P.O. Box Zurich SwitzerlandISIN: CH0102484968; Index: SLCI, SMI, SMIEXP, SPI;Listed: Main Market in SIX Swiss Exchange;
Datum: 07.10.2009 - 07:01 Uhr
Sprache: Deutsch
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