Deutsche Bank (XETRA: DBKGn.DE / NYSE: DB) confirmed today that it has reached agreement with Kleinwort Benson Group, the wholly owned subsidiary of financial services group RHJ International, on the sale of BHF-BANK, one of Germany’s leading private banks.
The transaction is subject to regulatory approvals.
Under the proposed transaction, Kleinwort Benson Group will acquire 100% of BHF-BANK for an agreed consideration of EUR 384 million, which will be paid in cash and is subject to closing purchase price adjustments.
With its significant market positions in private banking, asset management, corporate business and financial markets, and total assets under management of approximately EUR 36 billion, BHF-BANK represents a strong strategic fit with Kleinwort Benson Group’s existing businesses, which comprise Kleinwort Benson Bank, Kleinwort Benson Channel Islands Holdings and Kleinwort Benson Investors.
Leonhard Fischer, Chief Executive Officer of Kleinwort Benson Group and RHJ International, said: “BHF-BANK is an attractive business to us, with significant positions across its core businesses, a rich heritage and a strong balance sheet. With their client focus on entrepreneurs, corporates and wealth creators, and strong prospects in their domestic markets, Kleinwort Benson Group and BHF-BANK are also strategically well-aligned. We therefore see the proposed acquisition as a significant opportunity to create a strong, client-centric financial services group.”
Henry Ritchotte, Chief Operating Officer of Deutsche Bank, said: “With the planned acquisition of BHF-BANK by Kleinwort Benson Group, we have found the best solution for all parties, in particular for BHF-BANK’s valued clients. For the new, stronger BHF-BANK, this can open up sustainable, long-term prospects. Over the last few months, BHF-BANK has implemented its plans to decisively modernize and streamline its banking platform. It is therefore in an outstanding position to continue to operate its realigned business model successfully.”
Björn H. Robens, Spokesman of BHF-BANK's Board of Managing Directors, said: "The signing is very positive news for our clients and the bank. We are happy that the group of prestigious investors from all over the world confirms the attractiveness of our business model. This reflects the quality of our bank and shows the excellent prospects seen for our bank as a modern partner for companies and entrepreneurs.”
This release contains forward-looking statements. Forward-looking statements are statements that are not historical facts; they include statements about our beliefs and expectations and the assumptions underlying them. These statements are based on plans, estimates and projections as they are currently available to the management of Deutsche Bank. Forward-looking statements therefore speak only as of the date they are made, and we undertake no obligation to update publicly any of them in light of new information or future events.
By their very nature, forward-looking statements involve risks and uncertainties. A number of important factors could therefore cause actual results to differ materially from those contained in any forward-looking statement. Such factors include the conditions in the financial markets in Germany, in Europe, in the United States and elsewhere from which we derive a substantial portion of our revenues and in which we hold a substantial portion of our assets, the development of asset prices and market volatility, potential defaults of borrowers or trading counterparties, the implementation of our strategic initiatives, the reliability of our risk management policies, procedures and methods, and other risks referenced in our filings with the U.S. Securities and Exchange Commission. Such factors are described in detail in our SEC Form 20-F of 20 March 2012 under the heading “Risk Factors.” Copies of this document are readily available upon request or can be downloaded from www.deutsche-bank.com/ir.