German lender Deutsche Bank AG (DB: Quote) on Thursday confirmed that it has reached agreement to sell German private bank BHF-BANK to Kleinwort Benson Group, a unit of Belgium-based financial services group RHJ International SA (RHJIF.PK), for 384 million euros.
The transaction is subject to regulatory approvals. The consideration will be paid in cash, subject to closing purchase price adjustments.
Deutsche Bank said BHF-BANK holds significant market positions in private banking, asset management, corporate business and financial markets, with total assets under management of approximately 36 billion euros. It was acquired by Deutsche Bank in 2010, when the German lender bought Sal. Oppenheim.
It was declared a non-core unit soon and was put up for sale. Deutsche Bank had unsuccessfully tried last year to sell BHF-BANK to Lichtenstein's LGT Bank after German regulators blocked it.
According to Deutsche Bank, the private bank represents a strong strategic fit with RHJ's wealth-management unit Kleinwort Benson's existing businesses, which comprise Kleinwort Benson Bank, Kleinwort Benson Channel Islands Holdings and Kleinwort Benson Investors.
Chief Executive Officer of Kleinwort Benson Group and RHJ International, Leonhard Fischer, said, "BHF-BANK is an attractive business to us, with significant positions across its core businesses, a rich heritage and a strong balance sheet. ...We therefore see the proposed acquisition as a significant opportunity to create a strong, client-centric financial services group."
Deutsche Bank's Chief Operating Officer Henry Ritchotte stated that BHF-BANK, over the last few months, has implemented its plans to decisively modernize and streamline its banking platform and that with the sale is is in an outstanding position to continue to operate its realigned business model successfully.
Deutsche Bank shares are currently trading at 32.80 euros, down 0.10 euros or 0.30 percent on Frankfurt's Xetra.
In Belgium, RHJ shares gained 0.13 euros or 3.43 percent, and are currently at 3.92 euros.
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by RTT Staff Writer
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