EFG International, the Swiss private bank set to buy BSI from BTG Pactual of Brazil, needs to raise fresh capital to finance the acquisition. The board has decided how it wants to generate the cash.

EFG International in February 2016 agreed to pay about 1.3 billion Swiss francs for BSI, the private bank based in the Ticino region of Switzerland. For that purpose it needs to raise money. The Zurich-based bank today published its plan, about which shareholders will vote at the general meeting scheduled for April 29.

The increase will take place in several steps. The company will launch an ordinary share capital increase to raise as much as 500 million francs. The subscription price will be 6.12 francs per share.The final number of new shares issued and gross proceeds raised are dependent on the number of shares subscribed for by existing shareholders and new investors.

Shareholder Increases Commitment

EFG has received the commitment of its principal shareholder, EFG Bank European Financial Group, to exercise its full subscription rights relative to its 54.3 percent stake in EFG International. The shareholder has thus increased its commitment to subscribe for new shares to 271 million francs from a previously announced 125 million.

The bank will also issue additional shares as consideration to BTG up to a maximum amount of 250 million francs. BTG has agreed to become a shareholder in the combined company with a stake of a maximum 30 percent.

New Board Members

The board of EFG International proposes the election of John A. Williamson as chairman for a one-year term. Williamson was the CEO of the company for four years through April 2015. He will succeed Niccolò H. Burki, who is set to become vice chairman.

Robert Y. Chiu however will stand down as member of the board. The company proposes the election of Steve Jacobs, vice chairman of BSI and managing partner at BTG Pactual. In addition, the bank also suggests the election of Roberto Isolani, member of the board of directors at BSI and managing partner at BTG under the provision that BTG will hold 25 percent or more in EFG International as a result of the business combination with BSI.