Swiss private bank EFG International has agreed a final price of CHF971m for the acquisition of local rival BSI from BTG Pactual.

Under the latest arrangement, BTG will pay CHF89m in cash to EFG, of which CHF57.8m would be paid immediately. The remaining would be repaid in cash over 12 months or through the repurchase of EFG AT1 instruments previously issued to BTG, EFG said in a statement.

EFG said that the acquisition will reduce its capital ratio by around one percentage point.

EFG originally agreed to buy BSI in a cash-stock deal valued at CHF1.33bn in February 2016.

The deal was however, closed for CHF1.06bn in October 2016, though no definitive agreement was signed.

The price was slashed mainly due to its involvement in the Malaysian state fund 1Malaysia Development Berhad (1MDB) scandal. In May 2016, the Monetary Authority of Singapore (MAS) ordered BSI to shut down its Singapore operations owing to its involvement in the scandal and said that it would be stripped of its merchant banking status in Singapore.

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