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BTG Pactual to take 30% stake in EFG International

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BTG Pactual to take 30% stake in EFG International

Brazil's BTGPactual Group will end up with a 30% stake in following completionof the capitalincrease designed to fund the latter's acquisition of .

Existing EFG International shareholders exercised theirrights for 46,465,975 of the 81,687,345 newly issued shares, while a further1.7 million shares were acquired by investors in an international offering. EFGInternational set the offer price at CHF6.12 per new share, for gross proceedsof CHF295 million.

EFG BankEuropean Financial Group SA purchased 44,329,748 new shares worthCHF271 million via the rights issue. It will hold a 63.4% stake in EFGInternational following the completion of the transaction and will enter into alock-up period beginning April 28 and ending 180 days from the first day oftrading of the new shares, which is scheduled for May 13.

BTG Pactual Group, from which EFG International is buyingBSI, will acquire additional shares following the results of the rights issue,amounting to an investment of CHF178 million at the CHF6.12-per-share offerprice. The firm will also subscribe to CHF34 million of Additional Tier 1capital instruments to be issued by EFG, and it will receive an additional 4.02million new shares through the antidilution provisions included in the acquisitionagreement.

Combined with its base share consideration of 52.6 millionEFG International shares, BTG Pactual is expected to own a 30.0% stake in EFGInternational, the maximum amount it could take up under the structure of thecapital-raising transaction. EFG Group will have a stake of 44.4%.

Separately, EFG International said it received notice May 9of "significant premium increases" related to 15 policies issued byAEGON NV unitTransamerica Life InsuranceCo., which it considers unjustified and intends to challenge inU.S. courts.

EFG International said in late April that it planned tochallenge the imposition of similar hikes on 12 of the 48 Transamerica policiesin its held-to-maturity life insurance portfolio, adding that further suchincreases could force it to impair the carrying value of its holdings of lifeinsurance policies.