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BNP Paribas and Insinger de Beaufort join to create Anglo-Dutch wealth manager

Posted: 01 August 2008

BNP Paribas Private Bank S.A. and Insinger de Beaufort Holdings S.A. announce they have concluded a strategic partnership. The transaction has two parts. BNP Paribas Private Bank will acquire for a consideration of EU60 million a 35% interest in Insinger de Beaufort Holding B.V., the immediate holding company of Bank Insinger de Beaufort N.V. ("Insinger de Beaufort").

In parallel, BNP Paribas Private Bank will combine Nachenius Tjeenk, its Dutch activities, and London private banking activities with Insinger de Beaufort's activities. As a result, BNP Paribas Private Bank will receive additional shares in this new combined group, to reach a 60% to 65 % ownership (depending on the relative Net Asset Values of the combined businesses).

This strategic partnership will create a leading Anglo-Dutch wealth manager, of which BNP Paribas Private Bank will become the majority shareholder. Insinger de Beaufort Holdings S.A. will continue to ultimately hold the remaining capital of the combined group. Liquidity mechanisms are in place for 2013, which will then allow Insinger de Beaufort Holdings S.A. to sell its stake in the new group.

Upon closing of the transaction, which is expected to occur in early 2009, the new group will manage over EUR 10 billion of client assets, which will position it at the forefront of the wealth management industry in its target markets. It will globally employ some 250 staff and will be managed by a combined team. Headquartered in Amsterdam, the group will have branches in The Hague and Eindhoven for the Dutch private banking market and asset management activities in London for the coverage of the wealthy international clients.

BNP Paribas Private Bank is a major player in the global wealth management industry. This transaction is in line with its strategy to grow in select European countries and strengthen its position in its target markets. The combined group will immediately rank among the top five players in the Dutch market and be a visible force in the key international wealth management market in London. The clients will benefit from the solidity and security of an international private bank, part of a major worldwide banking group.

Insinger de Beaufort is a leading, quality private bank and asset manger, serving primarily private clients and institutional investors. As at the end of March 2008, it had EUR 5.6 billion of assets under management. Founded in 1779 and headquartered in Amsterdam, it now counts some 160 employees in its core operations. It has progressively focused in recent years on building its wealth and asset management businesses while exiting non-core activities. The adjusted pre-tax profitability on core businesses in 2007 stood at EUR 12.3 million.

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