Private bank and trust company Ansbacher (Bahamas) Ltd. will acquire the operations of Julius Baer, following the international wealth management company’s announcement at the end of February that it would close its Nassau booking center.
It was after Julius Baer made its February announcement that it received the purchase offer from Ansbacher, according to a press release.
“At the beginning of February 2020, Julius Baer announced its decision to close its Nassau booking center as part of the group’s efficiency and productivity program,” the press statement revealed.
“Following this announcement, Julius Baer received purchase offers for its Bahamas operations and reached an agreement with Ansbacher (Bahamas) Limited on April 30, 2020.
“Ansbacher will acquire Julius Baer Bank (Bahamas) Ltd., which has assets under management of around one billion Swiss francs, from Julius Baer Group Ltd. for an undisclosed amount. The closing of the transaction is expected in the second half of 2020 and is subject to customary transaction-related conditions, including regulatory approvals.”
Julius Baer said its withdrawal from The Bahamas is part of an efficiency and productivity program.
According to Julius Baer, Ansbacher could retain some of its staff in the acquisition, while others will receive their proper severance.
Julius Baer noted in a supplementary statement: “We believe a sale is a better outcome for all stakeholders than a liquidation, which would ultimately lead to a discontinuation of employment for all employees.
“The buyer will conduct interviews in the coming weeks and subsequently decide which employees it intends to retain.
“Julius Baer intends to honor any completion bonus that is due, at the latest by the transaction closing date.
“Employees who are not retained by the buyer will receive their severance payment and any completion bonus that is due from Julius Baer.
“The exact date will be defined by Julius Baer according to business needs and will be communicated to each employee individually. Our current understanding is that employees who are not retained by the buyer will be made redundant at the latest by the transaction closing date.”
Ansbacher is a Nassau-based bank and trust company owned by local financial group A.F. Holdings Ltd., which has US$11 billion in assets under administration and US$230 million in total equity.
“It is the largest, diversified, Bahamian-owned financial group,” the statement notes.