A South-African tech firm has agreed to buy a majority stake in a Liechtenstein-based blockchain bank. The executive team will stay at the helm of the company.
The new owners of Bank Frick have known the company for years: Net 1 had acquired a minority stake in Bank Frick at the end of 2016. Now, the South-African payment systems specialist agreed to take a 70 percent controlling stake and responsibility for the company as a whole, according to a statement released on Tuesday.
Net 1 will buy shares worth some 46 million Swiss francs ($46 million) currently held by the Kuno Frick family foundation. The foundation will retain a 30 percent stake and both Mario and Roland Frick will keep their seats on the board of the firm.
Executives to Stay
The executive team led by CEO Edi Woegerer will also stay. It was responsible for turning the erstwhile wealth manager into a fintech and Blockchain specialist with a European-wide reputation.
Net 1, which has a listing on the Nasdaq, sees the takeover of Bank Frick as a stepping stone for its expansion to Europe. Liechtenstein’s membership in the European Economic Area means that the company enjoys a free accession to the Common Market and this will enable the South Africans to market their payment services and technology offering aimed at small- and medium-sized companies in the EU.
Net 1 expects the acquisition to pay off by 2021.
Profit Warning
All has not been well with the Liechtenstein bank though. In 2018, the company suffered a slump in profit despite an increase in revenues and in August, Bank Frick issued a profit warning for 2019. Earlier this year, the bank had reshuffled the management.
The transaction is subject to regulatory approval in Liechtenstein. It is the latest sale following a string of divestments to foreign buyers in recent years.
Hong Kong’s Mason Group in 2017 acquired Raiffeisen private bank Liechtenstein. In 2016, Citychamp Watch and Jewellery Group (also based in Hong Kong) bought Valartis Bank Liechtenstein and renamed the firm Bendura Bank. Last but not least, Swiss-Iranian businessman Yousef Sherkati controls Alpinum Bank.
