Acquires Bankers Trust Australia Investment Bank
Document date:
Fri 25 Jun 1999
Published:
Fri 25 Jun 1999 00:00:00
Document No:
185981
Document part:
A
Market Flag:
Y
Classification:
HOMEX - Sydney +++++++++++++++++++++++++ Macquarie Bank Executive Chairman David Clarke said today Macquarie will acquire Bankers Trust Australia's Investment Bank (BTIB). Macquarie Bank Managing Director Allan Moss said Macquarie regards the BTIB businesses as successful, highly professional operations which have obvious synergies with Macquarie, Australia's only listed investment bank. "This transaction is about staff and businesses," Mr Moss said. "We have a very high regard for the BTIB staff and the acquisition presents Macquarie with an outstanding opportunity to acquire a large number of skilled professionals from a like organisation. "In addition, Macquarie will have the opportunity to acquire some large scale, market leading businesses, such as BT's debt markets business. "We are confident that we will be able to integrate the BTIB operations in the current year with at worst a neutral impact on earnings per share. The acquisition is expected to significantly enhance earnings per share in subsequent years." Mr Moss said Macquarie will begin taking steps to immediately integrate the BTIB businesses. "We have met with the senior management team of BTIB over the past week, at Deutsche's invitation, and their response was a major encouragement to us to proceed with the acquisition. "We hope a majority of BTIB employees from across the range of businesses will choose to remain with us. In the year ahead, we had expected to recruit up to 1,000 people to meet our normal business growth demands." Bankers Trust Australia Managing Director Rob Ferguson said: "This is an excellent outcome for our staff and clients. I hope as many staff as possible take the opportunity to continue their investment banking careers at Macquarie Bank." Mr Moss said the Bankers Trust businesses are very complementary to Macquarie's operations in that both groups have a similar entrepreneurial approach to business while maintaining high professional standards. Mr Moss said a key priority for Macquarie will be to maintain a high level of service to Macquarie's and BT's clients through the transition period and subsequently. The final purchase price will be determined at completion and will be equivalent to adjusted net assets, expected to be approximately $100 million. For the purpose of determining adjusted net assets, provisions will have been made for employee related payments and other costs and risks of acquisition. The transaction will be settled in early August, 1999. At the time of settlement, BTIB is expected to have gross assets of $5.1 billion, primarily comprising loan and trading assets. Risk weighted assets acquired will be in the order of $3.5 billion. MORE TO FOLLOW 1