According to the acquisition agreement, the basic consideration will be composed of the Net Asset Value (NAV) of the bank being acquired plus a multiple of the bank’s assets under management at closing.
The agreement excludes the Geneva building and the international operations of Banque Safdie that will remain in the hands of the Safdie family.
Bank Leumi said it plans to combine the private banking activities of Bank Leumi Switzerland and those of Banque Safdie under one roof, which will have assets under management of CHF10bn.
Leumi CEO Galia Maor said that the transaction reflects the clear international strategy formulated by the bank’s Board of Directors and Management, pursuant to which Leumi is strengthening its activities in areas where it already operates, and seeks to follow its customers to places where they operate.
"The acquisition of Banque Safdie strengthens and significantly contributes to our private and international banking operations, which are a central pillar in the Leumi Group’s business strategy," Maor said.
To effect the transaction, Leumi was assisted by Goldman Sachs as its financial advisor, Bar & Karrer and Kantor, Elhanani, Tal & Co. as legal advisors, and by the accounting firm PricewaterhouseCoopers.
