Banco del Estado de Chile (“BancoEstado”) and BNP Paribas Investment Partners (“BNPP IP”) have signed today a strategic partnership in asset management in Chile. Under the terms of the agreement, BNPP IP, through the holding company BNP PAM Group, will buy a 49.99% stake of BancoEstado S.A. Administradora General de Fondos (“BEAGF”), a subsidiary of BancoEstado. Simultaneously, BEAGF will enter into a 20-year exclusive distribution agreement with BancoEstado. The transaction is subject to regulatory approval.
BancoEstado has successfully developed a significant presence in asset management in Chile, leveraging its unique distribution network and its expertise in the retail segment. With US$787 million of assets under management as of September 2008, BEAGF provides high quality investment management products to a variety of corporate and retail investors.
Mr. Gilles Glicenstein, Chairman and Chief Executive Officer of BNP Paribas Investment Partners, said: “We are very happy to enter into a strategic cooperation with BancoEstado, a solid and well recognized institution with which we share a lot of common values. We have together high expectations as the Chilean market is one of the most promising in the Latin American region and in the world, and it is getting more and more sophisticated. With BancoEstado's expertise of the market, and our worldwide experience and client reach, we are well positioned to become the leading player in asset management in Chile. This new operation will strengthen BNPP IP's position in the Latin American market, where we already hold more than USD 16 billion of assets under management, via our subsidiaries in Brazil, Argentina and Uruguay and our operations on the continent. It will also reinforce our strength in the fast growing markets which we believe will be a key driver for future development.”
This joint venture will greatly benefit from BNPP IP's sales force in the Latin American region, and will leverage on BNPP IP's international presence in over 30 countries.
Mr. Pablo Piñera, Chief Executive Officer of BancoEstado, expressed his confidence that BEAGF would take a leading role in the asset management market in Chile. “We have carefully selected BNPP IP as a strategic partner through a large international bidding competitive process. We are convinced that this alliance will synergize the strengths, capabilities and expertise of BancoEstado and BNPP IP to introduce products and services of unparalleled quality and diversity.”
Mr. Piñera also said: “The joint venture will combine the strength, reliability and coverage of BancoEstado with the international product expertise and global network of BNPP IP. We will be well positioned to build on the already strong platform that we have established in the last few years”. He added that “the joint venture will of course carry on benefiting from BancoEstado's development plans, in particular in network and distribution channels.”
Deutsche Bank Securities Inc. acted as sole financial advisor to BancoEstado on this transaction.
Claro y Cía. acted as legal advisor to BancoEstado.
Philippi Yrarrázaval Pulido & Brunner acted as BNP Paribas Asset Management legal advisor.
BNP Paribas Investment Partners brings together the full palette of asset management expertise of the BNP Paribas group. Through a unique platform that offers immediate and simplified access to a broad range of specialist Partner companies, BNP Paribas Investment Partners has become a leader among the multi-specialist asset managers. At 30 September 2008, assets under management amounted to EUR 326 billion*, nearly half of which was managed for institutional clients. With 2,400 professionals serving clients in 70 countries, BNP Paribas Investment Partners draws on over half a century of asset management experience and has seen ten years of steady growth through acquisitions and joint-ventures.
BNPP IP has developed a strong franchise in New Markets with a network that includes operations and joint-ventures in Brazil, Argentina, China, India, Korea, Saudi Arabia, Morocco and Turkey, holding together EUR 25 Billion of assets under management as of end of September 2008.
* assets under advisory included
For more information, go to: www.bnpparibas-ip.com
BancoEstado is the third largest Chilean bank in terms of assets, loans and deposits. It's a Republic of Chile fully-owned autonomous enterprise competing on an arm's length basis with commercial banks. Leader in deposits and savings accounts with 85.6% market share in total number of savings accounts in Chile. BancoEstado participates in all traditional banking segments through its credit portfolio of mortgages, consumer and commercial loans. Most extensive network with 325 branches throughout the country covering the majority of the Chilean population complemented by 1,215 ATMs and more than 1,071 points of sales
For more information, go to: www.bancoestado.cl