UBS's Julius Baer stake lock-up agreement to end today
UBS's lock-up agreement related to its Julius Baer stake expires at the end of today.
UBS currently holds 20.7% of Julius Baer as a financial investment. As the stake is not strategic in nature, UBS will now start looking at divestment options.
At current market prices, proceeds from a disposal would be more than CHF 4.1 billion, which corresponds to a pre-tax capital gain of roughly CHF 2.1 billion. Gains from the Julius Baer stake will be used to buy back shares in the coming months as part of the 2007/2010 share repurchase program announced on 8 March 2007.
UBS has held the 20.7% stake since December 2005, when Julius Baer agreed to buy the private label banks, Banco di Lugano, Ehinger & Armand von Ernst and Ferrier Lullin, together with specialist asset manager GAM. As part of the transaction, UBS agreed to certain lock-up obligations.