EFG International Taps Investors For Extra Shares For BSI Deal

EFG, BSI, cap hike, peoplemoves

EFG International said it would tap shareholders again for extra shares to finance the acquisition of Swiss private bank Banca della Svizzera, or BSI. Its first capital-raising met with tepid success. 

Swiss private bank EFG International said it will ask shareholders to approve the creation of 15,000,000 more shares at an extraordinary investor meeting on July 26 in order to have the authorized capital to pay for BSI, which has been rocked by two separate scandals.

Zurich-based EFG took in 295 million Swiss francs in a previous cap hike in May, which was coolly received by investors. The bank needs shareholder approval to create more shares in order to fulfill the stock component of the acquisition.

BSI Execs Join EFG Management

EFG also reconstituted its management, under Chief Executive Joachim Straehle, including five executives from BSI: Renato Cohn, Reto Kunz, Maurizio Moranzoni, Gerald Robert und Renato Santi.

James Lee and Frederick Link will no longer be part of EFG's top management. Lee is retiring, while Link is remaining with EFG, the bank said.

EFG's new management under Straehle is as follows:

  • Giorgio Pradelli: Deputy Chief Executive Officer & Chief Financial Officer
  • Mark Bagnall: Head of IT & Operations
  • Albert Chiu: Head of Asia Region
  • Renato Cohn: Head of Investment Solutions
  • Anthony Cooke-Yarborough: Head of UK Region
  • Peter Fischer: Head of Strategy
  • Reto Kunz: Chief Risk Officer
  • Adrian Kyriazi: Head of Romandie & Continental Europe Region
  • Maurizio Moranzoni: Head of Global Markets
  • Gerald Robert: Head of Latin America
  • Renato Santi: Head of Central Switzerland, Ticino & Italy Region
  • Sixto Campano: Head of Americas Region; attendee of the Executive Committee

Integration Mid-2017

EFG International said that BSI would operate as a separate unit within EFG until it is fully integrated, which is expected for mid-2017. BSI is appealing a verdict from Swiss regulator Finma over its dealings with 1MDB, which effectively put the bank out of business. 

BSI's sale was previously agreed with EFG. BSI's current owner BTG Pactual sold the Swiss private bank after the Brazilian bank's owner came under pressure in a graft probe.

 

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