Julius Baer Holding has confirmed the timetable for the separation of its operations into two distinct, fully independent groups, both individually listed on the SIX Swiss Exchange. Julius Baer Group has said that it will focus on private banking services while GAM Holding will concentrate on active asset management. The separation is scheduled for completion on 30 September 2009 and the first trading day for Julius Baer Group and GAM Holding as separately listed entities is expected for 1 October 2009.
The group has added that the transaction will be structured as a carve-out of Julius Baer Group from Julius Baer Holding. Julius Baer Group will comprise Bank Julius Baer & Co as its principal operating entity, as well as certain related ancillary businesses.
Julius Baer Holding will be renamed GAM Holding and will be composed of GAM, Swiss & Global Asset Management (formerly JBAM) and a participation in Artio Global Investors. Reportedly, on 23 September 2009, the shares in Artio Global started trading on the New York Stock Exchange. Under the final terms, Julius Baer Holding sold 22,600,000 shares plus a potential additional 3,750,000 shares to cover over-allotments. The net proceeds will be allocated as follows: Julius Baer Group will receive $300 million; GAM Holding will receive the remainder and retain a stake in Artio Global.
With CHF142 billion assets under management as of 30 June 2009, Julius Baer Group is expected to benefit from private clients’ increasing level of demand for the services of an independent, strongly capitalised and fully dedicated private banking franchise. With CHF156 billion of assets under management as of 30 June 2009, GAM Holding is expected to be able to accelerate the development of its international institutional and US distribution franchise.
