EFGInternational AG said April 7 that its board will propose apre-emptive ordinary-share capital increase for up to CHF500 million to helpfinance its acquisition of BTG Pactual Group Swiss unit .
This will involve the issuance of up to 81,699,347 newly issuedregistered shares at a subscription price of at least CHF6.12. The shares havea nominal value of 50 centimes and will be offered to existing EFGInternational shareholders after the company's April 29 annual general meeting,where the proposal will be discussed.
EFG International noted that its principal shareholder,EFG Bank European Financial GroupSA, is committed to exercising its full subscription rights inrelation to its 54.3% holding in the company, thereby increasing its investmentas part of the rights offering to CHF271 million from the previously announcedCHF125 million.
At the AGM, EFG International's board will also propose tobe authorized to issue up to 75,958,871 registered shares with a nominal valueof 50 centimes each to BTG Pactual as consideration to be delivered at theclosing of the transaction.
In addition, the board will propose the election of formerEFG International CEO John Williamson as chairman for one year. If elected, hewill succeed Niccolò Burki, who will stand for re-election as a member of theboard and is set to become EFG International's vice chairman.