London: ABN Amro NV agreed to sell its private-banking assets in Asia and the Middle East to Liechtenstein-based LGT to focus on its European operations.
The unit manages about $20 billion in Singapore, Hong Kong and Dubai, representing about 10% of ABN Amro’s private-banking assets globally, the Dutch bank said in a statement on Tuesday. The company expects a “substantial book gain" on the sale, it said without disclosing a selling price.
“After a strategic review, we have decided to focus on further strengthening and growing our private-banking activities in northwest Europe," Jeroen Rijpkema, chief executive officer of ABN Amro private banking international, said in the statement. “The transfer of our private-banking business in Asia and the Middle East is the logical step in implementing this strategy."
Julius Baer Group Ltd. and DBS Group Holdings Ltd. had also considered bids for the unit, which could fetch more than $300 million based on the valuations of other recent deals, people with knowledge of the matter said in October.
LGT, owned by the Princely House of Liechtenstein, will increase its assets under management to more than $40 billion in Asia and about $160 billion in total, it said in a separate statement. Bloomberg