Bank Leumi Signed an Agreement to Acquire Banque Safdié SA for CHF177 Million

TEL AVIV, Israel, February 10, 2011 /PRNewswire/ -- Bank Leumi announced today that it signed an agreement in Geneva with the owners of Banque Safdié SA under which it will acquire the entire outstanding share capital of the bank.

According to the acquisition agreement, the basic consideration (before adjustments) will be composed of the Net Asset Value (NAV) of the bank being acquired plus a multiple of the bank's assets under management at closing, such that the total consideration is estimated at CHF177 million (excluding the Geneva building and the international operations that will remain in the hands of the Safdié family) based on the bank's current figures, subject to additional adjustments before and after closing as detailed in the acquisition agreement.

Bank Leumi plans to combine the private banking activities of Bank Leumi Switzerland and those of Banque Safdié under one roof, which will strengthen Bank Leumi Switzerland and make it a leading private banking brand among Israeli banks active in Switzerland, with assets under management of c. CHF10 billion.

Group CEO Mrs. Galia Maor and Head of the Private and International Banking Division Mr. Zvi Itskovitch signed the contract on behalf of Bank Leumi. In addition, Bank Leumi Switzerland CEO Mr. Amnon Zaidenberg, and the Management team played an active role in the negotiations. To effect the transaction, Leumi was assisted by Goldman Sachs as its financial advisor, Bär & Karrer AG and Kantor, Elhanani, Tal & Co. as legal advisors, and by the accounting firm PricewaterhouseCoopers.

Following the signing, Leumi CEO, Mrs. Galia Maor said that the transaction reflects the clear international strategy formulated by the Bank's Board of Directors and Management, pursuant to which Leumi is strengthening its activities in areas where it already operates, and seeks to follow its customers to places where they operate. "The acquisition of Banque Safdié strengthens and significantly contributes to our private and international banking operations, which are a central pillar in the Leumi Group's business strategy. For some time we have sought an attractive acquisition in Switzerland, which would suit Leumi's nature, size and style, and I believe that the combination of the two banks' platforms will create optimal synergies, which will allow for the expression of the professionalism , wealth of experience and excellent geographic presence in key international markets," said Maor.

Banque Safdié SA founder Mr. Edmundo Safdié said, "The Safdié Family has taken a strategic decision to focus its efforts in wealth management with Safdié DTVM Ltda. in Brazil and in the private equity and real estate sectors. We are convinced that Bank Leumi will be an excellent partner for our clients and employees and that it will continue the Safdié family tradition of service excellence in international private banking. With its global reach and wide service offering, we truly believe that Bank Leumi will constitute an excellent home for our clients and employees."

Closing of the transaction is expected to occur during the second half of 2011, subject to receipt of regulatory approvals from the Israeli and Swiss banking supervisory authorities. Bank Leumi intends to finance this acquisition with its internal resources.

About Bank Leumi (Switzerland) Ltd.:

Bank Leumi Switzerland was founded in 1953 and is subject to the banking laws of Switzerland and the Swiss regulatory authorities. Mrs. Galia Maor serves as Chairperson of the bank and Mr. Amnon Zaidenberg serves as CEO. The bank's headquarters are located in Zurich and the bank operates through branch in Geneva as well as representative offices in Israel. The bank provides private banking services to thousands of wealthy clients active internationally in 70 countries, including investment advice, portfolio management, discretionary account management, securities and foreign exchange trading, and lending (Lombard) to clients. The bank's Assets under Management amounted to more than CHF5 billion, as of September 2010.

About Banque Safdié SA:

Banque Safdié was founded by Mr. Edmundo Safdié in the late 1960s, and members of the Safdié Family are the shareholders of the bank. As a bank that specializes in private banking, its primary focus is on managing assets for Banque Safdié's clients worldwide. The bank's headquarters are located in Geneva and the bank engages in private banking through offices in Zurich, Lugano, Israel and Latin America.

    
    For further information contact:

    Roni Shefi, Prometheus
    +972-54-7997356
    roni@prometheus-cs.com