The Swiss government is to sell its entire SwFr 6 billion investment in UBS, it announced late Wednesday night. The state holding is in mandatory convertible notes which it aims to convert and sell to institutional investors on 25 August.
The Swiss government is to sell its entire SwFr 6 billion investment in UBS, it announced late Wednesday night. The state holding is in mandatory convertible notes which it aims to convert and sell to institutional investors on 25 August.
The news follows an 11 percent rise in the bank’s New York listed shares yesterday after the resolution of the protracted US tax case, although its Swiss-listed shares dipped around 1 percent. The government had previously said it would dispose of the rescue investment it made in UBS last October as soon as market conditions improved and a sale would not destabilise the bank. It is expected to book a significant profit on the investment.
Upon conversion of the notes, UBS will issue 332 million new shares with a nominal value of SwFr 0.10 each. The government will also waive its right to receive future coupons on the notes, in return for a cash payment of approximately SwFr 1.8 billion, a total representing the present value of the future coupon payments.
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