The Swiss bank, which is buying BSI from its Brazilian owner, has additional capital after a vote at an extraordinary general meeting.

Shareholders at Zurich-listed EFG International, the private bank in the process of acquiring fellow Swiss firm BSI, yesterday voted to raise an additional SFr7.5 million ($7.6 million) in capital.

At an extraordinary general meeting, shareholders voted to create an additional 15 million registered shares, each worth a nominal SFr0.5, EFG International said in a statement yesterday. 

Taking into account that the shareholders at the firm’s 29 April annual meeting have already given a green light to creating authorised capital of up to 75,958,871 registered shares, EFG International will be able to fully satisfy the share component of its BSI purchase, the statement said.

As announced on 11 May this year, the final size of the share component of the purchase price payable to BTG Pactual – the seller of BSI – is equal to 30 per cent of EFG International’s share capital immediately before the pre-closing of the transaction, corresponding to 85.8 million shares at the announcement date.

As reported on 18 July, EFG International agreed with Brazil's BTG Pactual to buy the latter's BSI Bank (Singapore), which has had its merchant banking licence revoked in Singapore amid money laundering lapses, in an "accelerated asset deal". Subject to getting the necessary regulatory clearance, it is planned that the migration of the acquired part of the business will be completed by the end of November this year "at the latest", Switzerland-headquartered EFG International said at the time.

In May, the Monetary Authority of Singapore said it was moving to revoke the merchant banking licence of BSI Singapore due to serious control lapses and misconduct around money laundering, in connection with payments involving 1MDB, the Malaysian state-controlled organisation, which is the subject of major corruption allegations.