Deutsche Bank makes strategic investment in Craigs Investment Partners
Deutsche Bank AG (XETRA: DBKGn.DE / NYSE : DB) and Craigs Investment Partners Limited (CIP) today announced a proposal whereby Deutsche New Zealand Limited, a wholly owned subsidiary of Deutsche Bank, would acquire a 49.9% interest in Craigs Investment Partners.
This new strategic alliance will see Craigs Investment Partners, one of the largest private wealth and investment management firms in New Zealand remain a stand-alone business, aligned with Deutsche Bank’s leading global investment banking platform.
Frank Aldridge, Craigs Investment Partners’ Managing Director today said “This is another positive step forward for our business. The opportunity to work closely with Deutsche Bank, one of the leading global banks, will help us offer an even broader range of financial products and services, global research and significant investment opportunities to clients”.
Brett Shepherd, Deutsche Bank’s New Zealand CEO, today said, “This proposal is an exciting opportunity for both parties and their respective clients. Deutsche Bank will gain access to a significant retail and wholesale equities presence in New Zealand, and position both Craigs and Deutsche to capitalise on the growth in the New Zealand capital markets over the next decade.”
Deutsche Bank’s Australasian equities business has consistently grown in strength and breadth in recent years and is currently ranked third by ASX market share* and third for underwritten Australasian equity capital markets transactions for 2009*. The additional New Zealand footprint this strategic investment brings to Deutsche Bank shows the Bank’s commitment to developing the New Zealand market.
Craigs Investment Partners Executive Chairman, Neil Craig said, “The Craigs Investment Partners Board is unanimous in its recommendation to our shareholders to approve this transaction. This proposal is a result of a significant period of dialogue and due diligence. In developing this proposal, the Board carefully considered our requirements and we believe Deutsche Bank is the strongest global ally for CIP – we are delighted to align ourselves with such a global powerhouse. We believe this transaction will provide a platform for growth for both businesses.”
Frank Aldridge said, “Craigs Investment Partners will continue to operate independently under the existing brand, preserving its identity and culture. However, the complementary nature of the businesses and the shared ownership will provide a key strategic advantage in a market where global investment banks have been withdrawing. We are confident that this transaction should deliver significant benefits to all Craigs Investment Partners’ and Deutsche Bank’s private, institutional and corporate clients”
Under the proposed transaction:
- Deutsche Banks’ New Zealand corporate finance team and Craigs Investment Partners equity and debt capital markets teams will work together, combining CIP’s established strength in distribution and New Zealand capital markets with Deutsche Bank’s leading advisory and global capital markets businesses, to provide all clients an enhanced service and product offering
- Deutsche Banks’ global institutional equities platform and Craigs Investment Partner’s New Zealand institutional equities platform will work in an integrated fashion, to provide execution to clients in New Zealand and globally
- Craigs Investment Partners will place an employee onto the Deutsche Bank’s Sydney institutional equities sales desk to drive cross border flows
- Institutional clients of both organisations will have access to Deutsche Bank’s global research and Craigs Investment Partner’s institutional equities research team in New Zealand
- Craigs Investment Partners’ wealth management clients will benefit from the CIP’s research analysts gaining access to the Deutsche Bank global research platform
- Craigs Investment Partners will look to access a wider range of products as the parties work together to explore the potential to leverage Deutsche Bank’s global product platform.
The existing Craigs Investment Partners shareholders will continue to hold 50.1% of the company with six existing directors continuing on the Craigs Board, including Neil Craig who will continue as Executive Chairman, alongside six representatives from Deutsche Bank Australia and New Zealand Limited.
The proposal is intended to be implemented by a scheme of arrangement and is conditional on, amongst other things, Craigs Investment Partner’s shareholder approval and obtaining all necessary regulatory and court approvals. It is intended that shareholders will be asked to vote on the proposal at a meeting in May 2010.
*Source: Bloomberg, IRESS
All media enquiries should be directed to:
Craigs Investment Partners
DDI +64 7 9277 980
Mobile +64 21 277 9800
Deutsche Bank AG
Phone +61 (02) 8258 2416
Mobile + 61 409 208 099
About Craigs Investment Partners
Craigs Investment Partners is one of New Zealand's largest independent investment firms, offering bespoke solutions to both private investors and corporate clients. Craigs provide the complete breadth of private client and investment management services including investment advice and management, securities trading, research, cash management, institutional dealing and corporate finance.
About Deutsche Bank
Deutsche Bank is a leading global investment bank with a strong and profitable private clients franchise. A leader in Germany and Europe, the bank is continuously growing in North America, Asia and key emerging markets. With 77,053 employees in 72 countries, Deutsche Bank offers unparalleled financial services throughout the world. The bank competes to be the leading global provider of financial solutions for demanding clients creating exceptional value for its shareholders and people.