BTG Pactual buys Generali’s BSI

Brazil’s largest investment bank, Banco BTG Pactual, has agreed to buy Swiss private bank BSI from Generali for SFr1.5 billion ($1.68 billion).

The consideration is composed of an amount of SFr1.2 billion ($1.35 billion) in cash and SFr300 million ($337 million) in BTG units listed on the Sao Paulo Stock Exchange.

Generali said that sale is part of its strategy to focus on its core insurance business and improve its capital position.

The transaction is expected to be completed by the first half of 2015 and on completion, Generali will reach a total of €3.7 billion in disposals of non-core assets.

The Generali group chief executive officer, Mario Greco, said: “The sale of BSI is a key milestone in the turnaround of Generali. With this transaction we exceed our Solvency 1 target, restoring the capital base of Generali over a year in advance of our 2015 plan. This sale completes the disposal process aimed at strengthening the capital base of the Group, resolving a key issue for us, and allowing Generali to focus on driving forward with its core insurance business.

“This result is a testament to our team’s ability and commitment to execute a complex transaction in a challenging environment. With regards to BSI, the sale will allow it to benefit from a new owner dedicated to its development as a leading private banking group.”