CS share lower: Apparently another interested party for CS business emerged – possible sale of participation | 10/14/22

CS share lower: Apparently another interested party for CS business emerged – possible sale of participation |  10/14/22

According to a media report, the Japanese financial group Mizuho is also one of the applicants for the “Securitized Products” business. According to another report, CS’s “Allfunds” stake is also up for sale.

Credit Suisse had already announced in July that it was “examining all options” for the securitized products business in its investment bank. According to a Bloomberg report on Friday, Mizuho Financial Group is said to be interested in acquiring at least a stake in the business.

Several interested parties from USA

According to earlier media reports, there are already a number of other interested parties from the US for the “Securitized Products” unit: According to Bloomberg, these include the private equity firms Apollo Global Management and Centerbridge Partners and the investment firms Pimco and Sixth Street.

Credit Suisse has a strong market position in the business of securitizing receivables such as mortgages or credit card debt. According to those responsible for CS, it is a “very attractive” business, but it also requires a large investment of capital.

Regarding the new Bloomberg reports, a bank spokeswoman once again referred to her usual statement to the AWP news agency on Friday: CS had already said that it would communicate about the progress of our comprehensive strategy review together with the third-quarter figures. “It would be premature to comment on possible results before this point.”

Allfunds participation under discussion

Credit Suisse’s stake in the Allfunds fund platform could also be up for sale. This is reported by the Spanish business newspaper “Cinco Dias”, citing informed people. CS did not want to comment on this report when asked by AWP either.

According to the latest annual report, the major Swiss bank holds an 8.6 percent stake in the company, which is listed on Euronext. At the current share price, the Allfunds stake is valued at around EUR 395 million (CHF 385 million). In the current year, however, the Allfunds course has fallen sharply – since the beginning of the year it has lost almost 59 percent.

Credit Suisse, which has been badly hit after the large spreads in the past year and several quarters of losses, intends to present the results of its strategy review on October 27th. In recent weeks there has also been repeated speculation about the need for capital by the big bank. A sale of parts of the company would improve the capital situation.

The Credit Suisse share temporarily lost 0.43 percent on the SIX to CHF 4.45. Zurich (awp)


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