Valartis Bank Liechtenstein is to be bought by Citychamp Watch & Jewellery Group Ltd, which is headquartered in Hong Kong. Along with the sale of Valartis Bank Austria, this latest move marks an important step in the Valartis Group's recovery plans.
The Hong Kong-based watch company has agreed to purchase 70 per cent of the capital and 89 per cent of the votes in Valartis Bank Liechtenstein. According to a press release, these are currently held by Valartis Finance Holding AG in Liechtenstein, the Liechtenstein-based finance holding of Valartis Group AG, which is headquartered in Baar, Switzerland. The transaction is still subject to approvals by the competent corporate bodies and Liechtenstein's Financial Market Authority, but closing is expected to occur by the end of June 2016. Citychamp Watch & Jewellery Group intends to keep the bank's employees.
The sales price for the 70 per cent share of the bank totals CHF 77.7 million. Valartis Finance Holding AG will use this amount to repay outstanding credit liabilities of CHF 43.2 million to Valartis Bank Liechtenstein. The remaining purchase price will be used to further reduce its debt and satisfy liquidity requirements of the Group, explains the press release.
The divestment of the private banks in Liechtenstein and Austria is an integral part of the recovery plans of Valartis Group AG and Valartis Finance Holding AG and is expected to help the Group cancel the bankruptcy deferral in Liechtenstein and lift the moratorium in Switzerland as quickly as possible. The plans call for a complete recovery.