Zurich-based UBS has entered an agreement to sell a partial stake in the now-defunct Credit Suisse’s securities unit in mainland China, complying with local regulations.
UBS has entered an agreement with Beijing State-owned Assets Management (BSAM) to sell a 36 percent stake in Credit Suisse Securities (China) for 650.5 million yuan ($91.4 million), according to a statement. In addition, Founder Securities will also sell its entire 49 percent holding to BSAM for 885 million yuan.
Following the sale, UBS and BSAM will own 14.99 percent and 85.01 percent, respectively, in Credit Suisse Securities (China).
Local Regulations
After the takeover of Credit Suisse, UBS held majority stakes in two securities units while local regulations only allow the ownership of one. The Swiss bank currently also owns a 67 percent stake in UBS Securities alongside 33 percent held by BSAM.
According to UBS group CEO Sergio P. Ermotti, it is «optimal» to sell the stake to BSAM which is a «key long-term business partner» that the bank has worked with for almost 20 years to develop its China business.
