Leumi Completes the Acquisition of Banque Safdié SA in Switzerland for 143 Million Swiss Francs

TEL AVIV, Israel, December 1, 2011 /PRNewswire/ --

Leumi announced today that it has completed the transaction to acquire the entire outstanding share capital of Banque Safdié SA, following the Immediate Report it made on February 10, 2011 regarding signing the acquisition agreement.

The consideration paid at the closing of the transaction is SFR 143 million, part of which was paid to the sellers, and the remainder put in trust to guarantee adjustments to the consideration deriving from changes in the assets managed by Banque Safdié for 24 months from the date of completing the transaction, and additional adjustments.

Banque Safdié is a private bank located in Geneva, with operations in Zurich, Lugano, Luxembourg, and a representative office in Israel, among others. Banque Safdié manages customer assets totaling nearly SFR 3 billion. In 2010, its net profit amounted to about SFR 2.8 million and in 2009 to about SFR 2.5 million. Bank Leumi plans to integrate Banque Safdié into Leumi Switzerland at the beginning of 2012, subject to receiving the necessary permits. The merger is expected to strengthen the standing of Bank Leumi Switzerland and make it a leading private banking brand among Israeli banks active in Switzerland. The transaction reflects the international strategy formulated by the Bank's Board of Directors and Management, whereby Leumi will work to strengthen its activities in the international arena, and will seek to follow its customers to the countries where they operate.

The completion of the transaction was led by the Head of the Private and International Banking Division Mr. Zvi Itskovitch, the Division team including the Head of Private and International Banking Department Ms. Nitza Rousso, and the Head of the Financial Products Management Department Mr. Eli Zellman, together with Bank Leumi Switzerland CEO Mr. Amnon Zaidenberg and his management team. The transaction was advised by lawyers Ms. Dalia Tal, Ms. Dana Yagur and Ms. Eleanor Horowitz of the law firm Kantor, Elhanani, Tal & Co., together with the Swiss law firm Bär & Karrer AG, and assisted by the accounting firm PricewaterhouseCoopers in Switzerland.

"The merger with Safdié is another step in establishing Leumi as a leading bank in the international arena, and we have no doubt about its contribution to expanding the range of services we provide our international customers," Mr. Itskovitch said on completing the transaction.

"Completing the merger strengthens the standing of Bank Leumi Switzerland as a leading financial institution," added Mr. Amnon Zaidenberg. "Incorporated in the changes in our operations we will combine the activity of the private banking teams of both institutions, to enhance the service provided to our customers in Switzerland, Israel and other countries, and as part of the longstanding tradition of personal service at Leumi."

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 a branch in Geneva and a representative office in Israel. Following the merger, the Bank will increase services offered in Geneva. The Bank services high-net-worth private banking clients in 70 countries around the world, and provides investment advice, customer portfolio and discretionary account management, securities and foreign exchange trading, and lending (Lombard) to clients.

Contact:
Linda d'Angelo, International Spokesperson
Bank Leumi le-Israel B.M., 35 Yehuda Halevi Street, Tel Aviv, Israel 61000
Tel: +972-3-514-9404, Fax: +972-3-514-9339, Cell: +972-50-651-9523

SOURCE Bank Leumi le-Israel B.M