Confirming an earlier report,BTG Pactual Group on April8 announced plans to separate its commodities trading business into a new firm tobe called Engelhart Commodities Trading Partners.

Under current plans, BTG Pactual will hand off 65% of the equityinterest in the new firm, to be based in Luxembourg, to its current shareholders;however, it noted that it also intends to give a portion of the interests in thefirm to senior employees within the new Engelhart entity. Following the spin-off,BTG Pactual will only be peripherally connected to the company, providing limitedoperational and administrative services as required.

The new company will have $1.6 billion in shareholders' equityand $5.7 billion in total assets. The spin-off does not include BTG Pactual's energytrading desk.

The move reportedly comes in an attempt to hold onto companytalent and shield the unit from the bank's ongoing scandal following the arrestof former BTG Pactual Chairman and CEO Andre Esteves in November 2015, BloombergNews reported earlier the same day.