Swiss banking giant UBS has introduced a share-for-share exchange offer to set up a new group holding company called UBS Group AG.
UBS Group said that it is planning to buy all shares of UBS AG in exchange for UBS Group shares on a one-to-one basis.
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Following the acquisition, UBS Group will become the holding company for UBS and its subsidiaries and its shares will be listed on the SIX Swiss Exchange (SIX) and the New York Stock Exchange (NYSE).
Under the terms of the transaction, a supplementary capital return of at least CHF 0.25 per share is expected to be proposed to shareholders of UBS Group.
UBS said that the new structure will allow it to qualify for a capital rebate under Switzerland’s ‘too-big-to-fail’ requirements, resulting in lower overall capital requirements for the bank.
The share-for-share exchange offer is expected to start on 14 October 2014 and to end on 11 November 2014.
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By GlobalDataSubject to customary conditions, the share-for-share exchange offer will terminate at the end of the day on 1 December 2014.
Additionally, UBS Group is also planning to set up a Swiss subsidiary in mid-2015 and a holding company for its U.S. operations by mid-2016.
