Bank Leumi plans to merge the private banking business of Banque Safdie and Bank Leumi Switzerland.
Bank Leumi (TASE: LUMI) has acquired Swiss Banque Safdie for CHF 177 million (NIS 670 million). The acquisition was made through Bank Leumi Switzerland
Banque Safdie's value is based on its shareholders' equity, plus a multiple of its assets under management, which total CHF 5 billion at the date of closing. The figure is subject to an adjustment formula; the final amount will be set on the basis of Safdie's private banking assets. Bank Leumi has also hedged against withdrawals from Banque Safdie's private banking business.
Bank Leumi plans to merge the private banking business of Banque Safdie and Bank Leumi Switzerland, which will boost its assets to CHF 10 billion.
Edmondo Sadfie founded the family-owned Banque Safdie in 1965. The family wants to focus on its business in Brazil.
Bank Leumi's share price fell 1.3% today to NIS 16.65, giving a market cap of NIS 24.8 billion.
Published by Globes [online], Israel business news - www.globes-online.com - on February 10, 2011
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