Swiss private banking group EFG International AG will acquire a 51% stake in Australian financial service provider Shaw and Partners Ltd. for a consideration of up to A$61.2 million, or roughly CHF44 million.
The acquisition will be paid through a combination of cash and up to 3.4 million newly issued EFG International shares. 70% of the total consideration will be paid upon completion of the deal, while the remaining balance will be paid in two tranches at the end of June in 2020 and 2021, respectively.
Shaw and Partners co-CEOs Earl Evans and Allan Zion will remain in their roles and are expected to jointly hold a 25% stake in the Australian firm upon completion, while the remaining 24% holding will be owned by existing shareholders. Shaw and Partners' AUM stood at A$15.9 billion, or about CHF11.4 billion, as of February.
EFG International CEO Giorgio Pradelli said the deal will help the group's plan to expand coverage in the Asia-Pacific region by 2022. It will also provide the Zurich-based firm with immediate access to the Australian market and strengthen the lender's offshore business in China.
The deal is expected to have a marginal impact on EFG International's capital ratios and is anticipated to be EPS accretive from the first year. Completion of the transaction is subject to regulatory approval in Switzerland, expected during the second quarter.
Rothschild & Co and Luminis Partners served as financial advisers to EFG International and Shaw and Partners on the deal, respectively.