Legend Holdings to buy Luxembourg’s oldest bank
Chinese investment holding company, Legend Holdings, which owns well-known PC maker Lenovo Group, has bought into Banque Internationale à Luxembourg, the oldest private bank in the country, The Paper reported.
Legend Holdings paid a total 1.534 billion euros (US$1.79 billion) to acquire an 89.936% stake in the Luxembourg bank.
The remaining 9.993% stake is held by the Luxembourg government. Other minority shareholders account for only 0.071%.
The Chinese company hopes to build up its foundation in the financial sector via this investment. Meanwhile, the company’s asset structure, which has been dominated by Lenovo, is expected to be optimized after the acquisition.
After that, the assets of the bank will account for 35% of the total assets of Legend Holdings, while Lenovo’s shares in the company will fall from 54% to 33%.
The existing governance structure and management team of the bank will remain the same.
Source: http://www.atimes.com