A Chinese organisation that has already bid to buy a venerable German private banking house has a similar entity in its sights.

Fosun Group, the China-headquartered investment house, has announced it intends to buy Belgium-domiciled BHF Kleinwort Benson Group, a bank with a strong German heritage and business footprint. Such a deal would add to an agreement Fosun has already struck to buy Hauck & Aufhäuser, the venerable German private banking and financial firm.

The deal is entirely separate to an agreement, announced in late May this year, whereby an investment group called Samena Capital that focuses on the Middle East, Asia and North Africa took a “significant” stake in the UK private banking and merchant banking arm of BHF Kleinwort Benson.

If approved by shareholders and relevant regulatory authorities, Fosun Group’s purchase of BHFKB Group will be another sign of how Chinese investors are seeking to diversify abroad into areas such as financial services for high net worth individuals. 

Hong Kong-listed Fosun International said it intends to launch a cash offer for all of the outstanding shares of BHFKB Group. 

“The voluntary tender offer for all outstanding shares of BHFKB Group is based on a total consideration of €497.741 million ($546 million) for those shares not already held by Fosun, offering €5.10 in cash per share (subject to reduction on a euro-for-euro basis in the event of a distribution paid by BHFKB Group),” it said in a statement.

“The offer price therefore reflects a premium of 16.0 per cent compared to the average share price over the last six months and a premium of 9.5 per cent compared to the last undisturbed share price of BHFKB Group on 25 July 2015." 

Fosun holds 19.49 per cent of the company’s voting rights and has already entered into an agreement to acquire a further 9.12 per cent, pending regulatory approvals (6.71 per cent have already been paid and will not be covered by the tender offer). 

Conditions for the offer include a “minimum acceptance threshold” that Fosun must secure 50 per cent plus one share of BHFKB Group voting rights, as well as regulatory approvals.

“We strongly believe in Europe and in Germany as the key growth engine of the continent. As an existing shareholder of BHFKB Group, we are convinced that the group, together with our many years of market and product experience, will bring about a financial services group with a sustainable, solid position in the areas of private banking, asset management and merchant banking,” Guo Guangchang, chairman of Fosun, said.

“The bank has made great efforts over the past years and is in an excellent shape to fit with our long-term, value-focused investment philosophy. We also share the cultural values of the Mittelstand as the backbone of [the] German economy. Thus, its deep relationships with the Mittelstand make BHFKB Group an ideal partner to combine Chinese growth momentum with global resources,” he said.

The Chinese organisation said it “plans to open a new chapter in BHFKB Group’s growth story by expanding its business to the Chinese market”. 

“The number of wealthy individuals in China is constantly growing on the back of sustainable 6 to 7 per cent GDP growth. We believe London as a global financial centre and Frankfurt as a financial centre for continental Europe and clearing centre for the renminbi to be natural choices for Chinese people to invest in Europe,” Guo said.

If the tender offer is successful, Fosun said it will set up a China office for BHFKB Group after the transaction is completed. 

A successful deal means that Fosun will also become majority owner of Kleinwort Benson Bank (UK) and Kleinwort Benson Investors (Ireland).