Closing on Takeover of Valartis Bank by Citychamp Watch & Jewellery Group
OREANDA-NEWS. Hong Kong-based Citychamp Watch & Jewellery Group Ltd. today took over 83.22 percent of the capital of Valartis Bank (Liechtenstein) AG from Valartis Finance Holding AG and from minority shareholders of the bank at a price of approximately CHF 93,545,470 (approximately HK$ 757,718,300). Valartis Finance Holding AG is the Liechtenstein-based finance holding of Valartis Group AG, Baar. Closing on this transaction means that the final precondition for the successful implementation of recovery plans for Valartis Finance Holding AG in Liechtenstein and Valartis Group AG in Switzerland has been fulfilled. Final implementation of recovery plans is expected in the fourth quarter of 2016.
Citychamp Watch & Jewellery Group Ltd. intends to continue the business activities of the private bank in Liechtenstein, with the existing management and employees, in order to carry on providing professional financial services in the fields of wealth management, investment advisory and fund management.
Hon Kwok Lung, Chairman of the Board of Directors of Citychamp Watch & Jewellery Group Ltd.: «Considering the unique position of Hong Kong as an international financial centre, especially after the implementation of the Belt Road Strategy of the PRC Central Government, the Group is interested in diversifying into securities and banking businesses. With the outlook and confidence in the future prospects of the banking industry, we believe that the acquisition provides an opportunity for the Group to diversify its businesses and broaden its revenue and income stream.»
Gustav Stenbolt, Chairman of the Board of Directors of Valartis Group AG: «The Board of Directors and Group Executive Management of Valartis Group are pleased to have found a solid and, in the long term, attractive acquirer for the bank in Liechtenstein. Citychamp Watch & Jewellery Group has the ideal prerequisites for providing the bank and its employees with a sustainable development potential».
Successful implementation of recovery plans for Valartis Group is expected in the fourth quarter of 2016
The agreed purchase price for around 70 percent of the capital of Valartis Bank (Liechtenstein) AG is CHF 77.4 m, plus a pro rata share in the bank's net income for the current period until the closing of this sale's transaction. This means that Valartis Finance Holding AG will repay its outstanding credit liability of CHF 43.2 m to Valartis Bank (Liechtenstein) AG. A further portion of the sales price will be used for the partial repayment of Valartis Finance Holding AG's outstanding credit liability of around EUR 68.4 m to Valartis Bank (Austria) AG. Following closing on divestment of the major banking operations of Valartis Bank (Austria) AG on 1 April 2016, the Austrian group retains EUR 11.0 m (net), plus equity amounting to EUR 61.8 m (as at 31 December 2015). On this basis, following the return of the banking license in Austria which has already taken place, the credit liability to Valartis Bank (Austria) AG will be reduced in full. The remaining proceeds from the sale's transaction in Liechtenstein will cover other Valartis Finance Holding AG outstanding liabilities and secure the Group's liquidity requirements.
Closing on the sales' transactions in Austria and Liechtenstein concludes the divestments which were required as a basis for the recovery of Valartis Group AG and Liechtenstein-based Valartis Finance Holding AG. These divestments and the cash flows they have generated, together with the agreements which have since been reached with creditors, enable the Board of Directors of Valartis Group AG and Valartis Finance Holding AG to implement final recovery measures targeted on the successful lifting of bankruptcy deferment in Liechtenstein and the moratorium in Switzerland during the course of the fourth quarter of 2016 - and ultimately to achieve complete recovery at the end of the process.