A new era dawns for Brown Shipley
31 July 2012
KBC Group (“KBC”) and Precision Capital today finalised their agreement on the sale, announced last October, of KBL European Private Bankers (“KBL epb”), after receiving authorization from the supervisory authorities concerned. This agreement for a total consideration of € 1 050 billion guarantees Precision Capital a 99.9% interest in KBL epb – a unique European network of local private bankers, represented in the United Kingdom by Brown Shipley. Precision Capital is a Luxembourg-based company governed by Luxembourg law. It represents the interests of a group of prominent Qatari private investors.
Due to its very high solvency – a core Tier One ratio of 16%, a 21% Loan-to-Deposit ratio and a substantial cash surplus of over € 3 billion – KBL epb proved a high-potential acquisition for Precision Capital. KBL epb will retain its name and the agreement KBC and Precision Capital guarantees that the KBL management team and services will be kept on. KBL epb remains one of the rare international banking groups to have its parent company in Luxembourg. Jacques Peters, CEO of KBL epb: “The new shareholder is committed to supporting our customer-driven business model and strategy over the long-term. These are major assets in their eyes and it was important for us to see our group’s strong points and potential judged at fair value.”
Jacques Peters, CEO of KBL epb said “The new shareholder is committed to supporting our customer-driven business model and strategy over the long-term. These are major assets in their eyes and it was important for us to see our group’s strong points and potential judged at fair value.”
The acquisition opens up major growth perspectives for the company, both on its European markets and also in Asia and the Middle East. Precision Capital will in particular support KBL epb in implementing its large recruitment campaign which will allow it to maintain and strengthen the high level of excellent service to its clients. The new owner will be able to ensure the organic onshore growth of KBL epb and it is also ready to seize strategic opportunities for external growth in Europe. Furthermore, Precision Capital’s strong links with the Middle East will speed up KBL epb’s expansion into this new region.
“We are very pleased with the conclusion of this transaction and the great opportunities that it represents for Brown Shipley,” explains Ian Sackfield, Managing Director. “Staff and clients alike should welcome the commitment to continue the growth plans for our business. Brown Shipley is a UK authorised bank with over 200 years of heritage and will continue to deliver the highest levels of personal attention to our existing clients. And with the conclusion of this deal, we can now look forward to developing some exciting new client propositions, adding to our growing number of investment and wealth planning teams and capitalising on our London presence”.