The Swiss private bank EFG International will be finalizing their departure from EFG Financial Products by liquidating their remaining 20.25% interest. According to the Notenstein, Raiffeisen's based private bank, they bought the said shares for 70.2 million Swiss francs or US$73.9 million from EFG International. This sale concludes EFG International's plan to exit from the structured products part and concentrate on private banking. Last October, an initial public offering (IPO) by EFG sold off their 33% share.
The sale raised the share values of EFG Financial Products by 22.75%. In a statement by Notenstein, it said it will open more opportunities for evelopment in the sales of structured products in the Swiss market. Although the transaction is still subject to regulatory approvals, it is expected that by the end of the second quarter of 2013, the representatives of EFG on the board of EFG Products will leave their posts.
According to EFG, all unsecured loans of Financial Products will end when the transaction closes, yet the bank will continue to grant a secure loan. In the departure of EFG International form Financial Products, it will no longer use the EFG in its name and by the end of 2013, EFG will rename itself.
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