EFG International, a global private banking group based in Zurich, is to acquire 51 per cent of the Australian financial services provider Shaw and Partners, subject to regulatory approval.
EFG is acquiring the majority stake in Shaw and Partners, which has assets under management of AUD15.9 billion (approximately CHF11.4 billion), for up to AUD 61 million (approximately CHF44 million) via a combination of cash and EFG shares.
The acquisition will considerably enlarge EFG’s coverage in the Asia Pacific region, providing immediate access to the Australian market and strengthen the bank’s China offshore business. The transaction expected to be EPS accretive from the first year and to have marginal impact on EFG’s strong capital ratios.
Closing of the acquisition is subject to regulatory approval in Switzerland, expected during the second quarter of 2019.
Giorgio Pradelli, CEO of EFG International, says: “We are very excited to announce the acquisition of a majority stake in Shaw and Partners, an investment and wealth management firm established in Sydney in 1987 with an impressive track record of profitable growth. With this acquisition, EFG will expand its market position in the Asia Pacific region into Australia, in line with our strategy to focus on markets that offer superior growth potential. The combination of Shaw and Partners’ well-established domestic business with access to EFG’s strong international product offering will allow both of us to leverage growth opportunities in this key region. The combined growth potential of this partnership will enable us to double our size in the Asia Pacific region by 2022.”
Earl Evans, Co-CEO of Shaw and Partners, adds: “We will continue to target opportunities for the growth and scalability of the firm to both broaden and better our offering to clients. Partnering with EFG is a natural combination and one that makes sense given our shared values of integrity, reliability and results. Additionally, both firms operate against a backdrop of entrepreneurship adopting a hands-on, solutions driven and client-centric approach.”