Leumi completes Bank Safdie acquisition for CHF 143m

Bank Leumi will merge Banque Safdie with Bank Leumi Switzerland in early 2012.

Bank Leumi (TASE: LUMI) today completed the acquisition of Geneva based Banque Safdie SA for CHF 143m, CHF 34 million, or 20%, less than the original price tag, due to a 40% drop in Bank Safdie's assets managed. Bank Leumi will merge Banque Safdie with Bank Leumi Switzerland Ltd. in early 2012.

Since the acquisition deal was signed at a price tag of CHF 177 million in February, Banque Safdie's assets managed have fall from CHF 5 billion to just below CHF 3 billion, partly because of the appreciation of the Swiss franc against the US dollar, and partly due to customer loss.

Banque Safdie posted a net profit of NIS 2.8 million in 2010 and NIS 2.5 million in 2009.

Bank Leumi will pay CHF 110 million to Banque Safdie's shareholders and deposit CHF 33 million in escrow to guarantee adjustments in the proceeds on the basis of changes Bank Safdie's assets managed over the next two years.

Published by Globes [online], Israel business news - www.globes-online.com - on December 1, 2011

© Copyright of Globes Publisher Itonut (1983) Ltd. 2011

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