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October 18, 2012updated 04 Apr 2017 3:33pm

Julius Baer raises $492m to fund Merrill deal

Julius Baer said today that it has raised 99.91% of the rights offer it set out in relation to its acquisition of Merrill Lynch’s international wealth management business from Bank of America (BofA).

By Lizabeth Davis

Julius Baer said today that it has raised 99.91% of the rights offer it set out in relation to its acquisition of Merrill Lynch’s international wealth management business from Bank of America (BofA).

The bank said that it had narrowly missed its CHF500m (US541m) target, proposed on 20 August 2012. In a statement the bank said that it would use gross proceeds of CHF492m to fund part of the acquisition.

 

Drop in original rights offer

Earlier this year, on 12 August 2012 the bank originally proposed a deal totalling CHF750m, CHF500m for the rights offer and a further CHF250m in new share capital for future strategic flexibility. However after a review of the offer at an extraordinary general meeting in September, the rights offer was reduced to CHF500m.

 

Diluted shareholding

In order to raise the capital the Swiss private banking group said it had diluted shareholding. In total 20,316,285 new registered shares have been issued in connection with the rights offering to existing Julius Baer shareholder at an issue price of CHF 24.20 per share.

After completion of the rights offering, Julius Baer said share capital of CHF4,334,140.82 divided into 216,707,041 registered shares would have been issued. Delivery of new registered shares against payment of the subscription price is expected to occur on 22 October 2012.

 

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