EFG International Jumps Most in Three Years on Share-Sale Plan

  • Parent company increases commitment to $524 million sale
  • Capital increase to help finance purchase of private bank BSI

EFG International AG jumped the most since January 2013 in Zurich trading after saying its parent company increased its commitment to a planned 500 million Swiss franc ($524 million) share sale to help finance its purchase of private bank BSI SA.

EFG climbed as much as 13 percent and was up about 12 percent at 5.82 francs as of 10:20 a.m. The bank plans to sell shares for at least 6.12 francs each, according to a statement on Thursday. EFG Bank European Financial Group SA, which owns a majority of the Swiss bank, will commit to buying 271 million francs of shares, more than double the amount previously stated.

The purchase of BSI from troubled Brazilian lender Grupo BTG Pactual SA will create Switzerland’s fifth-largest private bank with about 170 billion francs in revenue-generating assets. BSI had net client outflows of 9.3 billion francs last year and its assets under management declined 16 percent to 87.7 billion francs.

The price of the share sale reflects the commitment of EFG’s parent company headed by billionaire Spiro Latsis to the share sale, the company said.

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