UBS : sells 36.01% stake in Credit Suisse Securities in China to Beijing State-owned Assets Management

UBS sells 36.01% stake in Credit Suisse Securities in China to Beijing State-owned Assets Management

Beijing24 giu 2024, 18:00 CESTMedia Releases APAC

UBS announces that the firm and Founder Securities Co., Ltd. (Founder Securities) have entered into a three-party agreement with Beijing State-owned Assets Management Co., Ltd. (BSAM) for the sale of a total of 85.01% stake in Credit Suisse Securities (China) Limited (CSS) to BSAM.

Beijing, 24 June 2024 - UBS announces that the firm and Founder Securities Co., Ltd. (Founder Securities) have entered into a three-party agreement with Beijing State-owned Assets Management Co., Ltd. (BSAM) for the sale of a total of 85.01% stake in Credit Suisse Securities (China) Limited (CSS) to BSAM, following a comprehensive and competitive process. The transaction includes UBS AG's sale of a 36.01% stake in CSS for a consideration of US$91.4 million¹ (RMB650.5 million) and Founder Securities' sale of a 49% stake in CSS for a consideration of US$124 million¹ (RMB885 million). The completion of the transaction is subject to the necessary regulatory approvals and customary closing conditions.

CSS was formed in 2008 as a securities joint venture in China by Credit Suisse AG and Founder Securities. Since June 2020, Credit Suisse AG has held a 51% shareholding of the joint venture, with Founder Securities owning the remaining stake. Credit Suisse AG has been part of the UBS group since June 2023 and on 31 May 2024 the merger of UBS AG and Credit Suisse AG was completed, crossing an important milestone for the firm.

Sergio P. Ermotti, Group CEO of UBS, said, "China is a key market for UBS. Our acquisition of Credit Suisse means a bigger presence for us there. However, we have a comprehensive onshore multi-entity set-up across the two firms with specific regulatory requirements to comply with. So it is optimal for us to sell the 36.01% stake in CSS to our key long-term business partner with whom we have worked closely for almost 20 years to develop our business in China. We have had a longstanding presence on the mainland for 35 years and we will continue to expand in this important market."

Beijing State-owned Assets Management Co., Ltd. said that BSAM is one of the few municipal state-owned enterprises in Beijing with finance as its core business, covering banking, securities, factor market, consumer finance, etc., and has extensive experience in the management of financial enterprises. BSAM and UBS have a close working relationship for nearly 20 years, and the acquisition of the stake in CSS marks the further collaboration between the two parties. This also demonstrates a solid measure that answers to the country and Beijing's relevant requirements for the financial industry to support the real economy.

Following the completion of the transaction, UBS AG and BSAM will hold 14.99% and 85.01% in CSS respectively.

¹Based on exchange rate of 1 USD = 7.1201 RMB as of 24 June 2024

Notes for editors
About UBS

UBS is a leading and truly global wealth manager and the leading universal bank in Switzerland. It also provides diversified asset management solutions and focused investment banking capabilities. With the acquisition of Credit Suisse, UBS manages US$5.8 trillion of invested assets as per first quarter 2024. UBS helps clients achieve their financial goals through personalized advice, solutions, and products. Headquartered in Zurich, Switzerland, the firm is operating in more than 50 markets around the globe. UBS Group shares are listed on the SIX Swiss Exchange and the New York Stock Exchange (NYSE).

About Founder Securities Co., Ltd. (Founder Securities)

Founder Securities is one of the first comprehensive securities companies in China and was listed on the Shanghai Stock Exchange in 2011 (stock code: 601901). Founder Securities has 358 securities business outlets, 36 futures branches, 23 location subsidiaries, 1 asset management subsidiary, and 6 domestic and foreign holding subsidiaries. The company's business scope covers securities brokerage, futures brokerage, investment banking, securities proprietary trading, asset management, research and consulting, IB business, QFII business, securities margin trading, alternative investment, securities investment fund, over-the-counter market business, pledged repo business, consignment of financial products, entrusted management of insurance funds business, NEEQ market-making business, income certificate business, private equity fund management, etc.

About Beijing State-owned Assets Management Co., Ltd. (BSAM)

BSAM was established following the reform of Beijing's state-owned asset management system. The enterprise's main function is to manage and operate state-owned assets to ensure the preservation and enhancement of its value during operation. Since its establishment, BSAM has forged ahead in allocating resources to serve the development of the capital, investment and financing of major industry projects, and management and operation of important assets. BSAM has four major business sectors including financial services; environmental protection; park operation, information services and digital industry; and culture and sports. It is currently a state-owned investment holding group valued at RMB100 billion with core competitiveness. Its financial services business covers banking, securities, funds, property rights transactions, management of non-performing assets, guarantees and re-guarantees, etc. It is an important force to promote the high-quality financial development of the capital.

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