LLB is acquiring Semper Constantia Privatbank
Vaduz, 22 December 2017. Liechtensteinische Landesbank AG (LLB) has signed a purchase agreement to acquire 100 per cent of shares of Semper Constantia Privatbank AG (Semper Constantia), which has its registered office in Vienna. By means of this transaction, in line with its strategy, the LLB Group will increase its client assets by around CHF 17 billion and post a new business volume of more than CHF 75 billion. After executing the transaction the LLB Group will continue to have a very strong financial stability and security. The present main shareholders of Semper Constantia plan to hold around 6 per cent of the LLB. At the General Meeting of Shareholders on 9 May 2018, the Board of Directors will propose that
Dr. Karl Sevelda be elected as member of the LLB Board of Directors.
Significant expansion in the home market of Austria
Austria is one of the three home markets of the LLB Group, in addition to Liechtenstein and Switzerland. It has operated the subsidiary Liechtensteinische Landesbank (Österreich) AG in Vienna since 2009 and successfully runs the asset management business. As a further step in its expansion it has signed a purchase agreement with the owners of Semper Constantia to acquire 100 per cent of the bank.
Strengthening the home market of Austria
The acquisition of Semper Constantia allows the LLB Group to significantly expand its asset management business in Austria and to establish Austria as its third strong home market. Semper Constantia with its strong positioning in the private banking and institutional business and its excellent reputation represents an ideal addition to the activities of the LLB Group in Austria. After successful consolidation the combined unit will be one of the top providers in the private banking and institution business in Austria. This means it is ideally placed for further growth in this attractive market.
Acquisition to take place in two stages
The transaction – subject to approvals from the supervisory and anti-trust authorities – will take place as follows: In a first stage (probably July 2018), the LLB will acquire Semper Constantia. The takeover includes total client assets in the order of approximately CHF 17 billion (30 June 2017), thus increasing the business volume of the LLB Group to more than CHF 75 billion. In a second stage, in September 2018, Semper Constantia will merge with LLB Österreich to form Liechtensteinische Landesbank (Österreich) AG. Dr. Gabriel Brenna will become Chairman of the Supervisory Board and Dr. Bernhard Ramsauer will become CEO of the merged Bank. A transfer of Dr. Bernhard Ramsauer to the Supervisory Board of Liechtensteinische Landesbank (Österreich) AG is planned at the time of the annual general meeting in spring 2019.
New shareholder group for LLB AG
The purchase price of approximately EUR 185 million, consisting of equity and goodwill, will be paid partly in cash and partly in LLB AG shares. For this purpose, the LLB is allocating 1.85 million of its own shares. The definitive purchase price will be decided on closing or after the end of the earn-out period respectively.
When the transaction has been successfully executed, the present main shareholders of Semper Constantia will hold around 6 per cent of the capital and voting rights of the LLB. The LLB Board of Directors – subject to approval from the supervisory authority – proposes that Dr. Karl Sevelda, the present Chairman of the Supervisory Board of Semper Constantia, should be put forward for election as member of the Board of Directors at the General Meeting of Shareholders on 9 May 2018.
Long-term solution for clients and staff
In view of the similarities in their business models, corporate culture and range of services, the LLB Group is confident that it can secure continuity of high-quality support of the present clientele of Semper Constantia, while at the same time offering the staff interesting and valuable future prospects.
Business volume will grow to more than CHF 75 billion
Georg Wohlwend, Chairman of the Board of Directors of the LLB Group, comments on this step as follows: "The LLB Group with its StepUp2020 strategy is aiming at sustainable profitable growth. This acquisition is fully in line with our strategy to grow both organically and through acquisitions. With the acquisition of Semper Constantia, we will be able to significantly exceed our target, ahead of time, of increasing the business volume above CHF 70 billion. Moreover, the LLB will gain more shareholders focusing on the long term."
Group CEO Roland Matt adds: "The LLB Group feels strongly committed to the asset management market in Austria. A union will both strengthen private banking and expand the institutional banking division. This allows us to exploit synergies and create added value for staff, clients and shareholders. The acquisition opens up a point of entry for the LLB Group into the Austrian market for fund services. In this way it can realise its strategic goal of geographically expanding and developing the fund business."
Acquisition of Semper Constantia creates added value
Dr. Erhard F. Grossnigg, owners’ representative of Semper Constantia, states: "In the LLB, we have found a partner for a long-term successful future. As the longest-established bank in Liechtenstein, and with a Moody's rating of Aa2, the LLB represents security and stability. I feel confident that the convergence is the best solution for our clients and also for our staff. Dr. Haselsteiner and I look forward to being future shareholders of the LLB Group including Semper Constantia."
Dr. Karl Sevelda, Chairman of the Supervisory Board of Semper Constantia, says: "I have come to know those on the administrative bodies of the LLB as highly professional colleagues, and I look forward to a fruitful collaboration."
The LLB Group is holding a conference call at 10.30 a.m. today, Friday, 22 December 2017. This will be held in German. You will find the presentation documents (PDF) on our website at www.llb.li/mc22122017
Please dial in by telephone about 10 minutes before the start of the call:
+41 (0)58 310 50 00 (Switzerland / Liechtenstein and Europe)
+43 (0)1 25 302 1402 (Austria)
+44 (0) 207 107 0613 (United Kingdom)
The Liechtensteinische Landesbank AG (LLB) is the longest established financial institute in the Principality of Liechtenstein. The Principality of Liechtenstein holds the majority of the company's share capital. The 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 853 employees (full-time equivalent positions), the LLB is represented in Liechtenstein, Switzerland, Austria, and the United Arab Emirates (Abu Dhabi and Dubai). As per 30 June 2017 the LLB Group managed a business volume of CHF 59.9 billion.
Semper Constantia Privatbank AG
Semper Constantia Privatbank AG, with assets under management of EUR 15 billion net and 173 employees (in full-time positions) as at 30 June 2017, is one of Austria's leading private banks. The bank is exclusively owned by private shareholders, who consist of reputed Austrian entrepreneurs and members of the board. The core business areas include private banking, asset management, fund management, custodian bank and fund wrapper business, treasury services and real estate.
- 27 August 2019, 2019 Interim Finanical Statement
- 12 March 2020, Presentation of the 2019 Annual Result
- 8 May 2020, 28th Ordinary General Meeting of Shareholders
Dr. Cyrill Sele
Head of Group Corporate Communications & General Secretary
Telephone +423 236 80 99