Hong Kong-listed diversified investment group Legend Holdings has agreed to acquire a 90% stake held by Precision Capital in Banque Internationale à Luxembourg (BIL).
The Luxembourg government will retain the remaining 10% stake in the Luxembourg-based bank.
The acquisition proposal is subject to the approval from European Central Bank/ Commission de Surveillance du Secteur Financier (ECB/CSSF) and other regulatory authorities.
Acquiring Precision Capital’s stake in BIL is a long-term strategic investment for Legend Holdings. The company stated that it will provide financial and operational support to BIL for its growth as a brand, domestically and internationally.
Following the completion of the transaction, Legend Holdings will retain the present management of the bank, with Luc Frieden and Hugues Delcourt continuing in their roles as chairman and CEO, respectively.
BIL was acquired by Precision Capital along with Grand Duchy of Luxembourg in 2012. After acquiring BIL, the management team is claimed to have increased the operating revenue of BIL by 20% to €505m in 2016, while increasing its operating profit to 57% to €124m.
During the same period, the company’s assets increased to €23bn and total loans forwarded to customers increased by 27% to €12.2bn and assets under management grew by 30% to €37.7bn.
Legend Holdings founder and chairman Liu Chuanzhi said: “This is an important and exciting strategic investment for Legend. Financial services is one of Legend Holdings’ key target industries. BIL’s asset scale, revenue and profit growth potential, and its business stability meet Legend’s pillar assets criteria. It affirms Legend’s target of investing in pillar assets.
“Legend Holdings has accumulated extensive experience in the financial services industry, and has achieved a solid performance in the sector over the past years. BIL is a well-run and respected universal banking group with strong roots in Luxembourg’s history."
BIL chairman Luc Frieden said: "Thanks to strategic measures taken since 2012 – with the support of Precision Capital, the Luxembourg State, our employees and our clients – BIL has successfully regained its status as a leading Luxembourg financial institution."
Image: Legend Holdings to acquire Banque Internationale à Luxembourg’s majority stake. Photo: Courtesy of Banque Internationale à Luxembourg SA.