Hyposwiss General Bank Geneva is paying $11 million for IDB Swiss Bank.
Israel Discount Bank (TASE: DSCT) is liquidating its business in Switzerland, while Bank Leumi (TASE: LUMI) is getting out of Luxembourg. Discount Bank yesterday signed an agreement to sell IDB Swiss Bank, its arm in Switzerland, to Hyposwiss Private Bank Geneva for 10.9 million Swiss francs ($11 million). Discount Bank will make no profit on the deal.
The sale of Discount Bank's business in Switzerland is a result of its strategic plan of concentrating its international business in the US. Implementation of the plan began in August 2014; a number of bids for Discount Bank Switzerland were submitted in July 2015, and Discount Bank has now decided to sell its subsidiary to Hyposwiss. Discount Bank recently completed the sale of Discount Bank Latin America's business, a subsidiary of IDB New York, which is incorporated in Uruguay and operates there. The process of closing its London branch has also been completed.
Discount Bank will received the proceeds from the sale of Discount Bank Switzerland in payments, subject to adjustments derived from the value of the assets sold on the dates set forth in the agreement. After the deal is completed, Discount Bank will take steps to close down its Swiss subsidiary. As of the end of September 2015, Discount Bank Switzerland managed assets with an aggregate value of 1.35 million Swiss francs.
Hyposwiss is a family bank specializing in private banking. Most of its assets are kept by the Lawi and Kadoorie families. The bank has operated in Switzerland for many years, and expanded its business in 2014 through a merger with the Mirelis InvesTrust bank. Bank Leumi will close down its business in Luxembourg and distribute the equity as a dividend. Published by Globes [online], Israel business news - www.globes-online.com - on November 24, 2015
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