Swiss Life Holding, a life insurance company, has singed an agreement with Generali Group to sell Banca del Gottardo, for a total consideration of CHF1.875 billion, to BSI, a financial services provider.
The deal consists of the purchase price of CHF1.775 billion and the bank’s dividend of CHF100 million for the year 2007, payable in 2008. The price is subject to potential adjustments based on year-end figures regarding assets under management and equity.
Subject to the approval of the relevant authorities, the transaction is expected to be completed by the end of the first quarter of 2008. Therefore, Banca del Gottardo will be fully consolidated in Swiss Life’s 2007 financial statements.
Rolf Dorig, CEO of Swiss Life, said: For the Swiss Life Group as a whole, but also for Banca del Gottardo in particular, it’s now about taking the next step forward. Swiss Life will achieve its 2008 profit target of CHF1 billion already this year. Banca del Gottardo has made good progress over the last two years and is on track to reach its 2008 objectives. Together with the bank, we came to the conclusion that Swiss Life is not the best owner for the next stage of development, as we intend to focus our investments on our life and pensions business and enhance our respective market positions.