Zurich-listed EFG International has agreed to sell its remaining stake in EFG Financial Products to Notenstein Private Bank, the entity that is composed of the old non-US Wegelin private banking business that was transferred to Raiffeisen Switzerland last year amid Wegelin's tax case in the US.

The sale is subject to regulatory approval. The stake consists of EFG’s remaining 20.25 per cent of EFG Financial Products, and is valued at SFr70.2 million ($73.98 million).

The transaction is expected to complete during the first half of 2013; the disposal is part of EFG International's desire to focus on its core business of private banking, the firm said in a statement today.

When the transaction is complete, EFG Financial Products will be deconsolidated from EFG International. In addition, EFG International's representatives on the board of EFG Financial Products will step down at closing (although Patrick de Figueiredo, chief risk officer of EFG Group, will remain, but as a representative of the founders).

“EFG International will continue to access EFG Financial Products' structured investment products expertise as a white-labelling partner. In this context, while unsecured credit facilities will cease upon closing, it will continue to provide a secured credit line,” the statement said.

This transaction is expected to result in an exceptional accounting gain of approximately SFr37 million in EFG International's 2013 financial statements. Taking this and the deconsolidation into account, EFG International's pro forma Basel III fully phased-in BIS Total Capital Ratio would have increased from 15.9 per cent as of 31 December 2012 to 17.5 per cent.