EFG Financial Products announces that its parent company EFG International intends to proceed with the contemplated IPO of EFG Financial Products Holding AG in the fourth quarter of this year, subject to market conditions.
EFG International intends to proceed with the initial public offering of EFG Financial Products Holding AG, its Zurich-based integrated structured investment service provider, on the SIX Swiss Exchange in the fourth quarter of 2012, subject to market conditions. This is in keeping with EFG International’s business review, announced in October 2011, which sought to refocus the business on private banking and earmarked EFG Financial Products for an IPO. It also refl ects the progress made by EFG Financial Products in recent years; its future growth potential; and the belief that it can benefi t from a more independent positioning:
The board of directors of EFG Financial Products has been enhanced to refl ect its future direction. It now includes the following independent members:
EFG International is represented on the board by: John Williamson (CEO); Giorgio Pradelli (CFO); Patrick de Figueiredo (Chief Risk Offi cer of EFG Group); Frederick Link (Chief Risk Offi cer); and Lukas Rufl in (Deputy CEO and designated representative of the founding partners of EFG Financial Products).
The executive committee of EFG Financial Products comprises: Jan Schoch, CEO and founding partner; Michael Hartweg, Deputy CEO, CFO and founding partner; Sandro Dorigo, head Pension Solutions & Regions and founding partner; Ulrich Sauter, head Risk, Legal & Compliance; Michael Hoelzle, COO.
EFG Financial Products is currently preparing a prospectus which will be available at the launch of the public offering. Upon completion of the planned IPO, EFG International will reduce its stake in EFG Financial Products from 57% to not less than 20%, thereby strengthening its core tier 1 capital as well as sharpening its focus on private banking. EFG International will continue to fully consolidate EFG Financial Products for accounting, regulatory supervision and regulatory capital purposes; and it has agreed to support the evolution of EFG Financial Products towards a stand-alone business for a transitional period following the IPO. The planned IPO is also expected to raise fresh capital for EFG Financial Products.
EFG International will continue to provide guarantees for certain new products (although the share of these products is expected to reduce over time as a result of white-labelling cooperation with further partner banks), and existing guarantees on outstanding products will remain in place. EFG International will also continue to make the services of EFG Financial Products available to its clients as part of its open architecture approach.
Credit Suisse is acting as global coordinator and bookrunner for the planned IPO. Bank Vontobel AG and Crédit Agricole CIB are acting as co-lead managers. Rothschild is acting as independent fi nancial advisor to EFG International and EFG Financial Products.