EFG Financial Products Gains on Stake Sale: Zurich MoverGiles Broom
EFG Financial Products Holding AG rose the most in almost five months after Notenstein Private Bank agreed to buy a 20.25 percent stake in the Swiss firm from EFG International AG and sell its services to clients.
EFG Financial Products climbed as much as 6.1 percent, the biggest gain since the company sold shares in an initial public offering in October. The stock was 5.1 percent higher at 51.80 francs as of 1:10 p.m. in Zurich trading, valuing the company at 345 million francs ($364 million).
Notenstein, which is owned by St. Gallen, Switzerland-based Raiffeisen Group, agreed to buy the stake for 70.2 million francs, according to an e-mailed statement from EFG International today. EFG International, which created the investment products business in 2007, reduced its shareholding from 58 percent to about 25 percent at the time of the IPO.
Notenstein and EFG International will both be able to re-brand and market the firm’s investment products to their own clients, a practice known as white-labeling, EFG Financial Products said in a separate statement.
Today’s announcement is “a clear positive and confirms progress on management’s stated strategy in growing the white-labeling business,” Gurjit Kambo, a London-based analyst with Credit Suisse Group AG, wrote in a note to clients.