Julius Baer to separate its Private Banking and Asset Management businesses into two independently listed companies
Private Banking: all activities to be grouped and listed under Julius Baer Group Ltd.
Asset Management: GAM, Artio Global and Julius Baer Asset Management Europe to be combined into listed GAM Holding Ltd.
Opportunity for both businesses to deliver their full strategic potential
Improved transparency and substantially enhanced strategic flexibility for both units
Concluding step of the pure financial holding company principle introduced in 2007
Julius Baer will be separated into two distinct, independent entities, both listed on the SIX Swiss Exchange. Julius Baer Group Ltd. will be a leading pure-play private banking group, with a focus on servicing and advising private clients. GAM Holding Ltd. will be an independent active asset manager, composed of GAM, Artio Global Investors and Julius Baer Asset Management Europe.
The transaction is expected to enhance both businesses’ ability to deliver their full strategic potential by allowing each entity to focus on the implementation of an increasingly distinct business and expansion strategy. In addition, it will provide improved transparency and increased market visibility for both private banking and asset management. The transaction is not expected to result in any redundancies.
As a leading pure-play private banking group, Julius Baer Group Ltd. will stand to benefit from private clients’ increasing level of demand for the services of an independent, strongly capitalised and fully dedicated private banking franchise. This Group will maintain the expansion of its international network and complete the shift of its services and product model towards a unique, fully fledged ‘open architecture’ philosophy, allowing for a truly unrestricted choice of the best services and products available for the benefit of its clients.
GAM Holding Ltd. will be a leading active asset manager, offering a broad, well diversified range of equity and fixed income investment funds, discretionary portfolio management services and alternative investments. As a stand-alone entity, the business will be able to accelerate the development of its international institutional and US distribution franchise. The intention to proceed with the IPO of Artio Global in 2009 is confirmed, subject to market conditions.
The planned separation of the current Julius Baer Group into two independently listed corporate groups will conclude the gradual operational independence which has been afforded to the two business segments of private banking and asset management since the implementation of the pure financial holding company principle in 2007. Given its well established and strong relationship, GAM will remain the preferred product provider for the private clients of Julius Baer Group Ltd. particularly for funds of hedge funds.
“We are very pleased with our new strategic direction. In light of the challenges that many financial services business models are confronted with currently, we are convinced that both entities will benefit from their sharpened focus and the absence of competing interests, thus acting pro-actively in the best interest of all of our stakeholders”, comments Raymond J. Baer, Chairman of Julius Baer Holding Ltd.
The transaction will be subject to shareholder and regulatory approvals. An Extraordinary Shareholders’ Meeting (EGM) is targeted for 30 June 2009. An information brochure for shareholders with further detailed information will be made available prior to the EGM. The completion of the transaction with the separate listing of the two independent companies’ shares is expected to take place at the end of the third quarter 2009.
Due to the transaction, the results of Julius Baer Group for the first half 2009 will be released on 27 July 2009 (previously: 22 July 2009).
THIS PRESS RELEASE DOES NOT CONSTITUTE OR FORM PART OF ANY OFFER OR INVITATION TO SELL, SUBSCRIBE FOR, UNDERWRITE OR OTHERWISE ACQUIRE ANY SHARES IN JULIUS BAER HOLDING LTD., JULIUS BAER GROUP LTD. OR ANY OTHER SECURITIES, NOR SHALL IT OR ANY PART OF IT NOR THE FACT OF ITS DISTRIBUTION OR COMMUNICATION FORM THE BASIS OF, OR BE RELIED ON IN CONNECTION WITH, ANY CONTRACT, COMMITMENT OR INVESTMENT DECISION IN RELATION THERETO.
Important Notice Regarding Forward-Looking Statements
THIS PRESS RELEASE INCLUDES FORWARD-LOOKING STATEMENTS REGARDING EVENTS AND TRENDS THAT ARE SUBJECT TO RISKS, UNCERTAINTIES AND ASSUMPTIONS AND OTHER FACTORS THAT COULD CAUSE THE ACTUAL RESULTS AND FINANCIAL POSITION OF JULIUS BAER HOLDING LTD. TO DIFFER MATERIALLY FROM THOSE EXPRESSED IN, OR SUGGESTED BY, THESE FORWARD-LOOKING STATEMENTS. IMPORTANT FACTORS THAT COULD CAUSE THOSE DIFFERENCES INCLUDE, BUT ARE NOT LIMITED TO: LIMITATIONS OR CONDITIONS IMPOSED ON JULIUS BAER HOLDING LTD. IN CONNECTION WITH SEEKING CONSENT FROM REGULATORS TO THE COMPLETION OF THE TRANSACTION, TRANSITION SERVICES ISSUES, CHANGING BUSINESS OR OTHER MARKET CONDITIONS, GENERAL ECONOMIC CONDITIONS IN SWITZERLAND, THE EUROPEAN UNION, THE UNITED STATES AND ELSEWHERE, AND JULIUS BAER HOLDING LTD.’S ABILITY TO RESPOND TO TRENDS IN THE FINANCIAL SERVICES INDUSTRY. THE FORGOING LIST OF FACTORS IS NOT COMPLETE JULIUS BAER HOLDING LTD. DOES NOT UNDERTAKE TO UPDATE ANY FORWARD-LOOKING STATEMENTS THAT IT MAY MAKE.