Binckbank buys Rabo's Alex for 390 mln eur; announces rights issue UPDATE |
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Wed, 31 Oct 2007 08:25
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(Updates with details on EGM, regulatory approval, rights issue)AMSTERDAM (Thomson Financial) - Binckbank NV said it will buy Rabobank's investment banking unit, Alex Beleggersbank, for 390 mln eur cash and will fund the acquisition through a 385 mln eur rights issue and with cash reserves.Binckbank said the combined activities are expected to generate pre-tax synergies of about 18-20 mln eur a year from 2010.It said the tax benefit from the amortisation of fiscal goodwill for an envisaged period of 10 years will result in an expected annual tax saving of about 10 mln eur. The acquisition is also expected to be accretive on an adjusted earnings per share basis from 2008.Binck and Alex will continue as separate brands.Binckbank's three largest shareholders and founding management board members -- together holding 38.7 pct of the share capital -- have irrevocably committed themselves to vote in favour of the acquisition.The acquisition must be approved by Binckbank shareholders at an extraordinary general meeting and by the Dutch central bank, DNB, and the competition authority, NMa.Pending shareholder approval, Binckbank expects the rights issue will occur before the end of this year and is fully underwritten by Fortis and ING.The date for the EGM has not been announced.aaron.gray-block@thomson.comagb/sal/agb/wjCOPYRIGHTCopyright Thomson Financial News Limited 2007. All rights reserved.The copying, republication or redistribution of Thomson Financial News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Financial News.
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Binckbank buys Rabobank's Alex for 390 mln eur partly funded by rights issue 