Hong Kong-based Citychamp Watch & Jewellery Group has completed the acquisition of 83.22% stake in Valartis Bank (Liechtenstein) from Valartis Finance and from minority shareholders of the bank for nearly CHF93.54m.
Valartis Finance, the Liechtenstein-based finance holding of Swiss firm Valartis Group, held 70% of the capital and 89% of the votes in Valartis Bank (Liechtenstein).
Citychamp Watch & Jewellery Group intends to continue the business activities of the private bank in Liechtenstein, with the existing management and employees, Valartis Group said in a statement.
Hon Kwok Lung, chairman of the Board of Directors of Citychamp Watch & Jewellery Group, said: “Considering the unique position of Hong Kong as an international financial centre, especially after the implementation of the Belt Road Strategy of the PRC Central Government, the Group is interested in diversifying into securities and banking businesses.
“With the outlook and confidence in the future prospects of the banking industry, we believe that the acquisition provides an opportunity for the Group to diversify its businesses and broaden its revenue and income stream.”
Gustav Stenbolt, chairman of the Board of Directors of Valartis Group, said: “Citychamp Watch & Jewellery Group has the ideal prerequisites for providing the bank and its employees with a sustainable development potential.”
Completion of this deal, first announced in March this year, fulfills the final precondition for the successful implementation of recovery plans for Valartis Finance in Liechtenstein and Valartis Group in Switzerland.
Valartis Finance will use the sales proceeds to repay outstanding credit liabilities, including interest and credit costs totalling CHF43.2m to Valartis Bank (Liechtenstein).
The remaining proceeds are expected to be used to further reduce the debt and to meet liquidity needs of the group.
Final implementation of recovery plans is expected in the fourth quarter of 2016, the statement added.