ECONOMY

EFG CEO expects BTG to be silent investor

efg-ceo-expects-btg-to-be-silent-investor

EFG International AG expects Brazil’s Grupo BTG Pactual SA to be a silent investor when it takes a 20-30 percent stake in the Swiss bank, EFG’s chief executive told a Swiss newspaper.

As part of the 1.33-billion-Swiss franc ($1.33 billion) deal for EFG to buy BTG Pactual SA’s Swiss private banking unit BSI, the Sao Paulo-based bank will receive enough shares to become EFG’s second biggest stakeholder.

“We expect that BTG will be a silent investor,” EFG International chief executive Joachim Straehle told Finanz und Wirtschaft in an interview published Friday.

EFG will pay 975 million francs in cash, with BTG Pactual also getting a roughly 20 percent stake in EFG. This could rise to 30 percent if the share sale gets bogged down in tough markets. Greece’s billionaire Latsis family will remain EFG’s biggest shareholder.

[Reuters]