Valartis has decided to sell its Liechtenstein business to an unusual buyer: the branch is being sold to an Asian watchmaker.
Citychamp Watch and Jewellery Group has agreed to buy the Liechtenstein unit of Valartis Group, the Baar-based bank said in a statement today. With the sale, the company is concluding its recovery plan. The transaction needs the approval of the authorities of Liechtenstein.
Citychamp will pay 77.7 million Swiss francs for the unit, in which Valartis is holding a 70 percent stake. Valartis Finance Holding will use the proceeds of the sale to repay loans and interest worth 43.2 million to Valartis Bank (Liechtenstein).
Recovery Plan
Valartis in November announced the sale of its Austrian business. The successful completion of the transactions is an essential pre-requisite for the recovery and for the termination of the moratorium on Valartis Group in Switzerland and the cancellation of bankruptcy deferment for Valartis Finance in Liechtenstein.
As the moratorium on Valartis Group in Switzerland will end of May 23, before the Liechtenstein transaction is expected to be closed, Valartis intends to request a six-month extension of the current moratorium until November 23. The deferral of bankruptcy granted to Valartis Finance is currently scheduled to expire on June 28 and a further deferral may have to be applied for, the bank said in the statement.
New to the Industry
The buyer is not known for its banking services. Citychamp is a Hong Kong-based watchmaker listed on the local stock exchange since 1991.
«The acquisition of Valartis Bank (Liechtenstein) AG will help us to achieve our vision to diversify our business segments into banking, investment advisory and fund management services,» said Hon Kwok Lung, chairman of Citychamp.
