Vaduz/Zurich, 26 May 2003. The LGT Group, the financial services company of the Princely Family of Liechtenstein, is to acquire STG Schweizerische Treuhandgesellschaft and all of its subsidiaries from the Swiss Life Group for CHF 197 million. The takeover will allow LGT to extend its range of services for high net worth clients and strengthen its activities in Switzerland. STG will continue to operate under its existing name. For the Swiss Life Group the sale of STG represents a further step in its strategic realignment. The transaction is expected to be concluded within the next few weeks, subject to approval from the regulatory authorities.
The acquisition of STG represents another advance in the LGT Group's continuing strategic expansion, launched in 2001. The LGT Group and STG complement one another ideally, both in terms of core competencies and regional market presence. With STG's advisory services in the fiduciary, fiscal and legal fields the LGT Group will expand its expertise in the trust area. Combined with LGT's private banking and asset management know-how this will result in a comprehensive range of services for private and institutional customers. STG's six business locations in Switzerland will reinforce LGT's presence in this strategically important market alongside Liechtenstein, Germany, Hong Kong, Singapore and Japan.
LGT Group: strong boost for strategic positioning
With the STG takeover, the LGT Group will considerably strengthen its strategic positioning in markets which are becoming ever more competitive. H.S.H. Prince Philipp von und zu Liechtenstein, Chairman of the LGT Group, stated: "With LGT Bank in Liechtenstein, LGT has a solid international reputation in private banking. LGT Capital Management and LGT Capital Partners are a byword for asset management expertise in the traditional and alternative investment sectors respectively. With STG we will now boost the capabilities of LGT Trust to offer comprehensive advisory services in fiduciary, fiscal and legal matters. In return STG will gain a strong partner in private banking and asset management. The result will be integrated global consulting services for high net worth clients."
Operations to continue under the name of STG
STG Schweizerische Treuhandgesellschaft will continue its business activities in Switzerland under the existing brand name. STG's professional advisory services and LGT's trust services will form the new LGT Professional Advisory Services business unit under a common management. In Switzerland this will operate under the name STG Schweizerische Treuhandgesellschaft and in Liechtenstein under the brand name LGT Trust. Dr Sergio Taddei, incumbent Chairman of the Board of Directors of Schweizerische Treuhandgesellschaft, will head the new business unit. STG's asset management activities will continue to operate under the existing name of STG Asset Management. This will be placed under the same management as LGT's counterpart activities in Switzerland. It is expected that the LGT/STG merger will give rise to synergies. Personnel measures should be kept to a minimum by internal transfers and normal staff turnover.
The Swiss Life Group: firm focus on core business continues
For the Swiss Life Group the transaction represents a further step in its strategic realignment. The CHF 197 million in proceeds from the sale of STG will represent a loss of approximately CHF 100 million which will have an impact on the result for the first half of 2003. Rolf Dörig, Chief Executive Officer of the Swiss Life Group: "In the LGT Group we have found the best possible buyer who will guarantee STG success in its further development. With this divestment and the repayment of our loan to Private Equity Holding we have succeeded in taking another significant step in our strategic realignment. Providing that market conditions do not deteriorate, we expect to return to the profit zone this year in spite of the loss on this sale."
The LGT Group was advised on the transaction by Goldman Sachs International, the Swiss Life Group by Ernst & Young Corporate Finance.
The LGT Group is the financial services company of the Liechtenstein Princely Family which grew out of LGT Bank in Liechtenstein, founded in 1920. Today, the name LGT stands for classic private banking services and comprehensive investment know-how both in traditional and alternative forms of investment. LGT provides services for private and institutional clients, while the Princely Portfolio of approximately CHF 1.6 billion also makes it a significant and highly regarded investor in its own right. With almost CHF 40 billion in customer funds under management as of 31 December 2002, it is present in 19 locations throughout Europe and Asia and employs a workforce of some 900 employees.
STG Schweizerische Treuhandgesellschaft
STG Schweizerische Treuhandgesellschaft, founded in 1906, is the oldest and one of the largest fiduciary companies in Switzerland. Its activities are focussed primarily on Switzerland. Assets under management totalled approximately CHF 7 billion as of 31 December 2002. STG employs a workforce of just over 300.
The Swiss Life Group is one of Europe's leading providers of long-term savings and protection and life insurance. The Swiss Life Group offers individuals and companies comprehensive advice and a broad range of products via agents, brokers and banks in its domestic market, Switzerland, where it is market leader, and selected European markets. Multinational companies are serviced with tailor-made solutions by a network of partners in over fifty countries.
The Swiss Life Group, registered in Zurich, was founded in 1857 as the Swiss Life Insurance and Pension Company. Shares of Swiss Life Holding are listed on the SWX Swiss Exchange (SLHN). The company employs around 11 000 people.
Dr Hans-Martin Uehlinger, Head of Group Communications LGT
Tel. +423 235 1430, Fax +423 235 2500
E-Mail firstname.lastname@example.org, Website www.lgt.com
Tel. +41 1 284 77 77
email@example.com, Website www.swisslife.com
Tel. 01 284 52 76
firstname.lastname@example.org, Website www.swisslife.com
Invitation to the LGT Group media teleconference
The LGT Group invites you to a telephone media conference today
Monday, 26 May, 10:30(CET) / 09:30 (GMT).
The following members of the LGT Group will be taking part:
H.S.H. Prince Philipp von und zu Liechtenstein, Chairman of the LGT Group
Dr. Konrad Bächinger, Member of the Group Executive Committee
Dr. Hans-Martin Uehlinger, Head of Group Communications LGT
In order to take part in the media teleconference please dial the following number about 10 minutes before the conference is due to start:
Tel. +41 91 610 5600
The media teleconference will be available as a digital recording for 24 hours from 13:00 (CET)/12:00 (GMT) on Monday 26 May 2003. Please dial +41 91 612 4330 (Pin Code: 361#).
If you encounter any problems please contact the LGT press office, +423 235 1574.