Israel Discount Bank (TASE: DSCT), headed by Shlomo Zohar is continuing its expansion overseas. The bank has acquired Geneva-based Arzi Bank AG for CH 40.5 million (NIS 136 million), and will merge it with Israel Discount Bank (Switzerland) SA (IDBS). Of this amount, CH 25 million represented a payment of 3.8% of the bank's asset portfolio, and the rest for the bank itself.
"The acquisition is not a standalone, but represents part of our strategy of expanding our global reach," Zohar told "Globes." "In contrast to Bank Leumi and Bank Hapoalim, Discount Bank has not penetrated new markets, but is focusing instead on expanding its activity in those markets in which it already has a presence. We will focus on the expansion of our private banking services in Switzerland and in London, and, naturally, the activity of Discount Bank New York."
Arzi Bank, which was founded in 1962, is small bank specializing in private banking services, asset management and related services, and it currently manages CH 650 million in assets. Discount Bank has been looking to acquire a bank in Switzerland for the last two years, and the deal to acquire Arzi followed more than a year of talks which were nearly abandoned at one point. Discount Bank expects the deal to close within three months, which will allow time for any price adjustments to be made. In any event, the determining date for any change in the value of the bank or its asset portfolio is December 31.
Published by Globes [online], Israel business news - www.globes.co.il - on December 27, 2007
© Copyright of Globes Publisher Itonut (1983) Ltd. 2007