Basler Kantonalbank wants to expand its reach and become more innovative and profitable. It aims to use the network of Bank Cler to develop its plans.
Basler Kantonalbank (BKB) wants to buy the stake in Bank Cler it doesn’t already own, the bank said in a statement on Wednesday. It offers to pay 52 Swiss francs ($52) per share, a premium of about 23 percent.
BKB currently holds about 76 percent of Bank Cler, a company previously known as Bank Coop. The acquisition is estimated to cost a total of 210 million francs.
Quest for Higher Profitability
If successful, the move will make the regional bank BKB into a financial-service institute with a reach across the whole of Switzerland. Bank Cler has 32 branches spread across the country, which is key to BKB’s strategic planning.
The Basel-based bank hopes that the acquisition will help it reduce risks thanks to the wider reach, in particular in respect to the mortgage business. The company also expects to save money by merging services unit to boost competitiveness and profitability.
Digital Offering
The cantonal bank of the city of Basel has identified a further reason for making the transaction in the recently launched digital smartphone bank named Zak. BKB CEO Guy Lachapelle said that the acquisition will help his bank to develop its growth potential with new digital services.
BKB will finance the deal with assets it has available for such purposes and intends to delist Bank Cler following the conclusion of the transaction.
