LLB extends purchase offer to Bank Linth shareholders
Vaduz, 27 January 2022. Liechtensteinische Landesbank AG (LLB) intends to increase its equity share of its subsidiary Bank Linth LLB AG to 100 per cent. It will offer Bank Linth shareholders an attractive premium and the choice between a partial exchange for LLB shares with a cash component or a full cash settlement. The Boards of Directors of LLB and Bank Linth have mutually come to the conclusion that Bank Linth's stock should be delisted from the SIX Swiss Exchange. In the future, this will allow Bank Linth to concentrate fully on its clients. Existing potential for synergies and further growth will be exploited. The Board of Directors of Bank Linth recommends that shareholders accept the offer.
Bank Linth Board of Directors recommends acceptance
LLB intends to extend a public purchase offer to Bank Linth shareholders in order to increase LLB's equity share of Bank Linth from the current level of 74.9 per cent to 100 per cent. LLB offers an attractive premium and the choice between a partial exchange offer with a cash component or a full cash settlement. With the partial exchange offer, LLB is offering Bank Linth shareholders the opportunity to exchange some of their Bank Linth shares for LLB shares. Depending on their decision, this will allow Bank Linth shareholders to participate in the continued growth and the development of the entire LLB Group, take part in the LLB Group's General Meeting of Shareholders in the future, and profit from an attractive dividend policy. The partial exchange offer comprises 5 LLB shares as well as a cash component of CHF 323.00. The cash settlement amounts to CHF 600.00. Compared to the volume-weighted average price of a Bank Linth share on the SIX Swiss Exchange in the last 60 trading days prior to the announcement of the public purchase offer, this corresponds to a premium of 22.8 per cent.
It will be financed from LLB's own funds. The LLB shares required for the partial exchange offer can be obtained at a purchase price of CHF 55.39 per LLB share (corresponds to the volume-weighted average price of the LLB share from the last three trading days prior to the signature of the purchase agreement) from the majority shareholder, the country of Liechtenstein. This will not result in dilution for LLB shareholders.
The Board of Directors of Bank Linth, which is represented by independent members, recommends that Bank Linth shareholders accept LLB's offer. The Board of Management also supports LLB's offer.
Bank Linth is a key pillar of the LLB Group
On 27 October 2021, LLB introduced its new ACT-26 strategy, which outlines the further development of the LLB Group. ACT-26 stands for taking action – and also for acceleration and transformation. The goal of the new strategy is to accelerate previous growth while, at the same time – and with increased use of digitalisation – making the LLB Group more customer-oriented, efficient and sustainable. With this new strategy, the Group will be focussing on the topics of growth, efficiency and sustainability for the next five years.
With ACT-26, the LLB Group is also reaffirming its commitment to the Swiss market and to Bank Linth as a key pillar within the LLB Group. With its services for private and corporate clients in Switzerland, Bank Linth is a strategically vital element of the LLB Group. Since LLB obtained the majority stake in 2007, both banks have profited from their cooperation and mutually beneficial synergies, and have successfully pursued important developments. As a retail bank with a strong regional base, profitable growth is paramount to Bank Linth. It pursues this with the aim of continually honing its customer and sales focus and offering clients an attractive range of services and products both now and in the future.
Creating further added value
The Boards of Directors of LLB and Bank Linth have mutually come to the conclusion that delisting Bank Linth from the SIX Swiss Exchange will allow Bank Linth to concentrate fully on its clients and their needs while at the same time reducing complexity and cutting costs. This will also better equip Bank Linth for the future.
"Further development of Bank Linth is an important component of our ACT-26 strategy. We want to continue our successful cooperation of the past 15 years and work together to create added value for Bank Linth clients," says Group Chief Executive Officer Gabriel Brenna. "Our business strategy is built on long-term relationships and sustainability. We hope that the Bank Linth shareholders will choose the partial exchange offer and that we will be able to welcome them as LLB shareholders. This will allow them to participate in the continued growth of the entire LLB Group and profit from an attractive and sustainable dividend policy with a distribution radio of more than 50 per cent of Group profit."
Advance notice of the public purchase offer was published today and can be viewed on the Liechtensteinische Landesbank website www.llb.li/kaufangebot as well as on the Swiss Takeover Board website www.takeover.ch. The offering prospectus is scheduled to be published on 25 February 2022.
Brief portrait
Liechtensteinische Landesbank AG (LLB) is the longest established financial institute in the Principality of Liechtenstein. The majority of the company’s share capital is held by the Principality of Liechtenstein. LLB’s shares are listed on the SIX Swiss Exchange (symbol: LLBN). The LLB Group offers its clients comprehensive wealth management services as a universal bank, in private banking, asset management and fund services. With 1'213 employees (full-time equivalent positions), LLB is represented in Liechtenstein, Switzerland, Austria, Germany and the United Arab Emirates. As per 31 December 2023, the business volume of the LLB Group stood at CHF 102.2 billion.
Important dates
- 23 April 2024, ex-dividend date
- 25 April 2024, distribution dividend
- 26 August 2024, presentation of 2024 interim business result
Contact
Liechtensteinische Landesbank AG
Dr. Cyrill Sele
Head of Group Corporate Communications & Sustainability
Telephone +423 236 80 99
Internet llb.li
LEGAL DISCLAIMER
Bank Linth LLB AG (the Offer) will not be made, directly or indirectly, in any country or jurisdiction in which such offer would be unlawful or otherwise violate any applicable law or regulation or which would require Liechtensteinische Landesbank AG to make any amendment to the terms or conditions of the Offer, to make any additional application to, or to take any additional action with respect to, any governmental, regulatory or legal authority. It is not and will not be intended to extend the Offer to any such country or jurisdiction. Documents relating to the Offer may not be distributed in, or sent to, any such country or jurisdiction. Such documents may not be used for the purpose of soliciting purchases of Bank Linth AG securities by any person or entity resident or incorporated in such country or jurisdiction.
This Communication constitutes neither an offer to sell nor a solicitation to buy securities of Liechtensteinische Landesbank AG or of Bank Linth LLB AG and it does not constitute a prospectus or similar notice within the meaning of articles 35 et seqq. or 69 of the Swiss Financial Services Act or a prospectus pursuant to the laws of any other jurisdiction. This Communication may be considered to be marketing material. An investment decision regarding the securities of Liechtensteinische Landesbank AG should only be made on the basis of the prospectus that will be published in connection with the public tender offer and will be available free of charge at
http://www.llb.li/kaufangebot.
This Communication is namely not for distribution in the European Economic Area, the United States, Canada, Australia, Japan. This communication does not constitute an offer to sell, or the solicitation of an offer to buy, securities in any jurisdiction in which is unlawful to do so.
Certain statements in this Communication are forward-looking statements. By their nature, forward-looking statements involve a number of risks, uncertainties and assumptions that could cause actual results or events to differ materially from those expressed or implied by the forward-looking statements. These risks, uncertainties and assumptions could adversely affect the outcome and financial consequences of the plans and events described herein. Neither Liechtensteinische Landesbank AG nor any of its respective directors, officers, employees, advisors, or any other person is under any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. You should not place undue reliance on forward-looking statements, which speak of the date of this Communication. Statements contained in this Communication regarding past trends or events should not be taken as a representation that such trends or events will continue in the future.
