Legend buys 90% stake in Luxembourg bank

Date: 05 Sep 2017

Legend Holdings Corp, parent company of the world's biggest PC maker Lenovo Group Ltd, reached an agreement on 1 Sep to buy 90 percent of Banque Internationale a Luxembourg (BIL) for 1.48 billion euros ($1.76 billion), Reuters reported.

It marks the biggest takeover of a European deposit-taking bank by a Chinese firm so far, as well as Legend's biggest overseas acquisition.

Legend said the acquisition is being made through its Hong Kong subsidiary Beyond Leap Limited.

Reuters reported in July that Legend was in talks with Precision Capital to buy a 90 percent stake in BIL. The remaining 10 percent is owned by the Luxembourg government.

Founded in 1856, BIL is the oldest private bank in Luxembourg. It employs more than 2,000 people globally and, as of the end of 2016, managed a total of 37.7 billion euro in assets.

The deal is an important strategic investment for Legend. Financial services is one of the key target industries for the company, Legend Chairman Liu Chunzhi said.

Liu said that Legend planned to support BIL and its current management, and build BIL into a Luxembourg-based international bank.

The deal, which has to obtain approvals from regulators including the European Central Bank and Luxembourg's Commission de Surveillance du Secteur Financier, is expected to be completed in the first quarter of next year.

Legend said the company hoped to expand its financial sector layout in Europe through the deal, and provide services to enterprises participating in the Belt and Road Initiative.

According to BIL's annual report, its net profit fell to 110 million euros in 2016 from 134 million euros in 2015, partly due to write-downs and restructuring expenses.

Source: China Daily

Disclaimer
The information on this page may have been provided by a contributor to ChinaGoAbroad, and ChinaGoAbroad makes no guarantees about the accuracy of any content. All content shall be used for informational purposes only. Contributors must obtain all necessary licenses and/or ownership rights from the relevant content owner(s) before submitting such content (including texts, pictures, photos and diagrams) to ChinaGoAbroad for publication. ChinaGoAbroad disclaims all liability arising from the publication of any content/information (such as texts, pictures, photos and diagrams that infringe on any copyright) received from contributors. Links may direct to third party sites out of the control of ChinaGoAbroad, and such links shall not be considered an endorsement by ChinaGoAbroad of any information contained on such third party sites. Please refer to our Disclaimer for more details.
Top